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LUNA 2.0 vs LUNA Classic: What’s the difference between LUNA 2.0 and LUNA Classic?

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This article is a complete guide on LUNA 2.0 vs LUNA Classic. In fact, the token LUNA gained more than 2,000% within 2 months in 2021. Many skeptics believed this price growth was unsustainable, making a bubble that was about to burst and releasing most gains. 

The crypto world noticed many attractive projects come to life. For instance, some want to supersede financial enterprises, while others dug more in-depth into fine arts and digital collectibles. Therefore, there is no preventing this trend of decentralization, which might certainly drive it to prove itself in the mainstream. Cryptocurrencies have long been blamed for their volatile prices. No one would like to watch his holdings decline in value overnight. That’s how stablecoins were born, and Terra Luna was looking to bridge the hole between the highly volatile markets, and the mainstream customer. Let’s take a look at it in more detail.

The Terraform Labs stablecoin UST and its concurrent LUNA token tumbled in May, giving shockwaves to the crypto markets that they have yet to heal from. But in an endeavor to repair the system, Terra relaunched the new LUNA token called LUNA 2.0 at the end of May. Let’s take a look at it in more detail.

What is Terra (Luna)?

The Terra project was established in 2018 by ex-Apple and Microsoft software engineers: Do Kwon, who was an earlier founder and CEO of decentralized wireless mesh networking company Anyfi, and Daniel Shin, who co-founded e-commerce company Ticket Monster.

Terra is a blockchain that utilized stablecoins to boost price stability in global payment networks. In fact, they assert to incorporate price stability and fiat currencies by allowing Bitcoin (BTC), thus presenting reasonable settlements. Volatility was a highly debated issue in the cryptocurrency domain. It is one of the main motivations that made investors worry about holding cryptos. Terra aims to reverse that, by utilizing fiat-pegged stablecoins. They would maintain a “one stablecoin to one fiat” peg via a proprietary algorithm that automatically adapts the stablecoin pool based on its request. This is attainable thanks to their token LUNA, which delivers liquidity, and price solidity, and is readily swappable to other stablecoins at advantageous exchange rates.

What Is Terra Luna Classic (LUNC)?

Luna Classic (LUNC) is the actual Terra Luna token gone behind pursuing the takeoff of a new Terra chain after the recent UST/Luna failure. Luna Classic (LUNC) has now undertaken after Do Kwon and his Luna recovery program witnessed the launch of Luna 2.0 to supersede the old token. After a Terra Luna vote, Terra established a new chain that it expects will recover the ecosystem from the Luna crypto crash a few months ago. For now, the old chain stays – called Terra Classic – along with its token, Luna Classic.

What exactly happened?