Why Investing In Terra Classic (LUNC) May Be A Bad Idea
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The value of Terra Classic (LUNC) had dropped below zero after the biggest crash ever seen in the crypto space. The cryptocurrency had refused to “die” and has instead found favor with crypto investors trying to make a quick buck from the highly volatile cryptocurrency. However, due to several factors, investing in LUNC is not necessarily such a good investment, even if there are several pumps.
Uncertainty at Terra Camp
After the crash of the Terra network, which caused users to lose billions of dollars, Terra founder Do Kwon and others had made another token that was dropped to holders. But this new cryptocurrency is also gaining momentum.
Most of the issues have surfaced against Terra founder Do Kwon and other partners. The search for the founder had escalated after the South Korean authorities issued an arrest warrant for him. Although Kwon had taken to the social media site Twitter to “plead” his case and said he had not escaped from authorities, South Korean authorities had disputed his claim that they had not caught Kwon.
Singapore police had also confirmed that Terra’s founder was no longer in the country, where he had moved to earlier this year. Then on Monday, September 26, it was confirmed that the International Polic (Interpol) had issued a red notice to the founder.
This red notice means that wherever Kwon is, Interpol will charge local law enforcement to arrest him. Although Kwon had insisted he was fully cooperating with authorities, South Korean officials said he was not cooperative in any way, hence the multiple arrest warrants.
Terra Classic (LUNC) is a bad idea
Due to the issues still plaguing the Terra network and its founders, the cryptocurrency has been extremely volatile. This is compounded by the fact that there are now two tokens, and LUNA has proven to be the more stable of the two.
Currently, LUNC is a gambler’s gambler and has attracted those who essentially play the market like a casino. This lack of long-term conviction makes the brand a bad play, especially for those looking for a brand to stick with.
Uptrends can be massive, but so are declines. For example, while the rest of the market has actually seen small gains over the past seven days, the price of LUNC has fallen 25% during that time. In the last 24 hours, LUNC has recorded more than 10% losses.
LUNC price has reacted negatively to news of Do Kwon’s arrest warrants. Now, with Interpol involved, it has become a matter of when, not if, Kwon will be caught. When this happens, the price of Terra Classic will likely drop below what it was during the network crash.
Featured image from Finbold, charts from TradingView.com
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