Terra Coin: A Worthy Investment?

Terra (LUNA) is a decentralised finance facility and blockchain protocol that uses a native token, a stablecoin protocol, an oracle scheme, and smart contracts to provide users with planned internet assets. The Terra blockchain is built to enable the next generation of Web3 products and services. It is a programmable blockchain e-commerce platform for making cross-border payments. The e-commerce platform uses fiat-pegged stablecoins to provide stability, low fees, and instant settlement. The native token of Terra is LUNA, which has a maximum supply of 1 billion tokens. LUNA is available on several common exchanges, including Binance.

Terra's price history and analysis

Terra (LUNA) was founded in January 2018 by Daniel Shin and Do Kwon, with the aim of creating a new kind of 'intelligent currency' that could represent the flexibility of the modern economy. Terra is a decentralised finance facility and protocol blockchain that brings singular principles and ideas to the market.

The cryptocurrency Terra (Luna) saw a tremendous increase in valuation in the last few months of 2021. The potential Anchor Protocol, an economical network that provides low-volatility yields, seems to have been hyped by buyers. The Anchor Tokens are lowered to LUNA stakers, which is why the digital gold prices are rising.

After its release in 2019, the LUNA coin traded with a value of $1 to $1.50 for five months. 2019 was lower than average for Terra Luna as the coin did not face any particular growth. By January 2020, the coin had dropped to $0.22, making it an all-time low. The coin struggled to cross the $0.20 mark for the next few months.

In 2021, there was a sudden increase in costs, and in just two months, the coin crossed the $20 mark. By March 2021, the price of LUNA had increased well over 13,000% from January 1, 2021, to a new all-time high of $85.80. After peaking in March at over $23, the price of LUNA slowly dropped over the next two months. On May 19, LUNA suffered a steep decline, down over 80% from the March high. The price of LUNA consolidated over the next two months, before gaining over 300% in the next 30 days.

In 2022, Terra's native token boasted a market capitalisation of over $41 billion and was among the top 10 largest cryptocurrencies in the world. However, in early May 2022, Terra's ecosystem saw capital flight, following the depegging of the algorithmic stablecoin UST and a plunge in LUNA prices. As a result, investors began to withdraw and sell their UST tokens, and LUNA saw hyperinflation. Between May 9 and May 12, LUNA lost nearly all of its value, dropping by 99.98% from about $64 to $0.0087.

The new LUNA coin, LUNA2, was launched in May 2022 after the collapse of the original Terra crypto. The new LUNA coin opened at a price of $18.98 on May 28, 2022, but immediately plummeted to end the day at $4.94. Although the price moved back up to $11.97 on May 30, it fell again and reached an intraday low of $1.96 on June 8. Things got worse for LUNA, and on June 18, it sank to a low of $1.66.

In late January 2023, a bull run saw LUNA reach a high of $2.52, before a slow decline saw it trade at around $1.25 on March 28. On April 12, 2023, LUNA surged to a high of $1.50, before falling back to $1.42. At that time, there were 252,495,792 LUNA in circulation out of a total supply of 1,004,262,701. This gave it a market cap of around $358 million, making it the 109th-largest crypto by that metric.

LUNA's price history has been volatile, and it is difficult to make accurate predictions about its future price. However, some sources predict that LUNA could reach a price of $150 by the end of 2022, $250 in 2023, and $400 in 2024.

The pros and cons of investing in Terra

Pros

• Terra (LUNA) is a programmable blockchain e-commerce platform for making cross-border payments, using fiat-pegged stablecoins to provide stability, low fees, and instant settlement.
• Terra is built on Cosmos blockchain technology and is designed to disrupt traditional retail payment apps. It is a proper end-to-end payment solution, unlike the traditional fragmented payment infrastructure.
• Terra's next-generation blockchain payments network can increase efficiency for payment service providers and increase value for customers.
• Terra has helped build an e-commerce alliance with 15 initial partners that accounts for $25 billion in gross merchandise value and a customer base of 45 million.
• Terra's native token, LUNA, has a maximum supply of 1 billion tokens. New LUNA tokens are minted through the protocol's algorithm as needed to maintain the price stability of Terra's stablecoins.
• Terra's ecosystem also includes an algorithmic stablecoin, TerraUSD (UST).
• Terra is secured using a Tendermint-based proof-of-stake consensus algorithm. LUNA token holders stake their tokens as collateral to validate transactions and receive rewards proportional to the amount of LUNA staked.
• Terra's successful Columbus-5 upgrade will lead to further expansion of the Terra ecosystem, with at least 160 new projects launching on Terra in early 2022.
• Terra has a strong community of #LUNAtics, which is a diverse and rapidly growing Web3 ecosystem with projects across DeFi, Gaming, and NFTs.

Cons

• Terra is currently involved in a legal battle with the U.S. Securities and Exchange Commission (SEC), which is accusing Terra of breaching securities laws and failing to comply with a previously issued subpoena.
• The collapse of Terra's algorithmic stablecoin, UST, and its native token in May 2022 caused a significant impact on the crypto market.
• The arrest of Terra founder Do Kwon in March 2023 and the subsequent charges of fraud by American prosecutors have created uncertainty around the project.
• The new LUNA coin, launched after the collapse of the original Terra crypto in May 2022, has seen significant price volatility and is yet to reach the same levels as its predecessor.

How to buy Terra

If you're looking to invest in Terra (LUNA), there are a few steps you need to take to get set up. Here's a detailed guide on how to buy Terra:

Step 1: Download a Crypto Wallet

The first step is to download a crypto wallet. There are many different crypto wallets available, so choose one that is well-integrated based on your region, payment method, and policy. You can download a wallet as a Chrome extension or a mobile app, depending on your preference. Some wallet options include Google Chrome with a wallet Chrome extension or mobile apps available on the iOS App Store or Google Play.

Step 2: Set up Your Wallet

Once you've downloaded your chosen wallet, it's time to set it up. Use the wallet's support page as a resource to guide you through the setup process. Make sure to take note of your wallet address and keep your seed phrase secure, as you will need this information later.

Step 3: Buy Your Base Currency

Now you need to purchase your base currency. You can do this by logging into your Exchange account and going to the Buy & Sell Crypto page. If this is your first time using a crypto exchange, you can usually find tutorials on how to sign up and make your first purchase.

Step 4: Send Your Base Currency to Your Crypto Wallet

After purchasing your base currency, go to your wallet section, find the coin you purchased, and withdraw it. Fill in the required information, including choosing the proper network, and provide your wallet address and the amount you want to transfer. Then, click withdraw and wait for your base currency to appear in your wallet.

Step 5: Choose a Decentralized Exchange (DEX)

Next, you need to choose a Decentralized Exchange (DEX) that supports the wallet you chose in Step 2. For example, if you're using the Binance wallet, you can use Pancake Swap to complete the transaction.

Step 6: Connect Your Wallet and Trade Your Base Currency for Terra (LUNA)

Use the wallet address from Step 2 to connect your wallet to the chosen DEX. Select Terra (LUNA) as the coin you want to buy, and choose your base currency as the payment method.

Step 7: If You Can't Find Terra (LUNA), Look for Its Smart Contracts

If you can't find Terra (LUNA) listed on the DEX, you can use bscscan or etherscan to locate the smart contract address and then copy and paste it into Pancake Swap. Be cautious of scams and ensure you have the correct contract address.

Where to Buy Terra (LUNA):

You can buy LUNA on exchanges such as Gemini and Voyager. LUNA tokens are also available on various other exchanges, including Binance.

It's important to note that Terra has gone through some changes since its collapse in May 2022, and the new Terra 2.0 network was launched, with its native token LUNA or LUNA2. When investing in Terra, ensure you are aware of these changes and conduct thorough research.

Terra's market capitalisation

Terras Market Capitalisation

In December 2021, Terra (LUNA) was ranked 10th by market capitalisation on CoinMarketCap, with a market cap of around $26 billion. At its peak in April 2022, Terra's native token boasted a market capitalisation of over $41 billion, ranking it among the top 10 largest cryptocurrencies in the world.

The Collapse of Terra and the Launch of Terra 2.0

In May 2022, Terra's community voted in favour of founder Do Kwon's proposal to create a new blockchain, Terra 2.0, following the collapse of Terra's algorithmic stablecoin, UST, and its native token. The new LUNA token was distributed to LUNC stakers, LUNC and UST holders, and essential app developers of the old Terra chain. The initial supply of LUNA at the genesis of the new chain was one billion coins.

As of 14 April 2023, there were 252,495,792 LUNA in circulation out of a total supply of 1,004,262,701. This gave it a market cap of around $358 million, making it the 109th-largest crypto by that metric.

As of June 2024, the market cap of TerraClassicUSD (USTC) was $2 billion USD.

Terra's future price predictions

Terra (LUNA) is a decentralised finance facility and blockchain protocol that was founded in January 2018 by Daniel Shin and Do Kwon. It is a programmable blockchain e-commerce platform for making cross-border payments.

Terra's Price History

Terra's price has been volatile. In 2019, the LUNA coin traded between $1 and $1.50 for five months. In January 2020, the coin dropped to an all-time low of $0.22, and closed the month at $0.18. In March 2021, it broke the $1 mark again and reached a high of $22.33. In December 2021, it hit $103.33, and in April 2022, it reached an all-time high of $119.18. However, in May 2022, the price of LUNA dropped by 99.98%, from about $64 to $0.0087.

Future Predictions

According to Wallet Investor, the LUNA coin's value could rise to $0.000499 by December 2023 and potentially move to $0.00186 in five years. CoinCodex predicted that the coin could reach $0.000187 by 7 December 2022 and $0.000222 by 1 January 2023. DigitalCoinPrice predicted that LUNA could trade at around $0.000212 in 2022, $0.000453 in 2023, $0.000627 in 2024, $0.000780 in 2025, $0.000948 in 2027, $0.00133 in 2028, and $0.00188 in 2029. CaptainAltCoin predicted that the coin could fall to $0.0001 by January 2023 and only recover slightly to $0.0002 by December 2023. Its 2025 prediction said the coin could grow to $0.0003, but it also predicted that LUNA could lose all its value by December 2027.

Other predictions are more optimistic. Walletinvestor predicts three-digit growth in the next few years, with the price reaching $120 by June 2022 and $160 by the end of 2022. By 2024, LUNA can be traded for $350, and by 2025, the coin will easily cross the $400 benchmark and trade at a value of $450. DigitalCoinPrice also predicts that LUNA will cross the $200 barrier by 2025. According to Terra, the initial supply of LUNA at the genesis of the new chain was one billion coins, and new coins will be released with every block as staking rewards, at a default rate of about 7% per annum.

It is challenging to make long-term forecasts for any cryptocurrency due to the volatile nature of the market. Many factors can affect the success of a coin, and it is important to do thorough research before investing.

Frequently asked questions