What Is Terra and How to Buy LUNA?

Did you know Terra's market value skyrocketed from $315 million on January 1, 2021, to over $35 billion by the end of Q1 in 2022? That is a return of 71,000% over 15 months. Isn’t that insane?

In this article, we’ll talk about Terra (LUNA), why it crashed in 2022, how about it in 2023, and how you can buy the new LUNA tokens.

What Is Terra?

Terra is an open-source blockchain project that makes it possible to carry out the terms of smart contracts. The primary platform token for Terra is called LUNA. LUNA can be staked, and it can also be used for network governance. It also plays an important part in the production of stablecoins called TerraSDRs. 

Terraform Labs was initially established in 2018 by Do Kwon and Daniel Shin. Soon after, the group found Terra, and subsequently, in April 2019, they released the mainnet of their blockchain project. 

After the launch of Terra, the company began providing stablecoins tied to several currencies, including the United States dollar, the Mongolian tugrik, the South Korean won, and other International Monetary Fund SDR currencies. According to the whitepaper for Terra, the platform compares the censorship resistance of Bitcoin with the price stability and wide adoption of fiat currency to enable digital transactions at lower costs.

What Is LUNA? 

Terra has its native token called LUNA, which is used to safeguard the stablecoins that are generated by the protocol. In addition, users are granted the ability to cast votes about the governance of the network thanks to this native token. 

The total supply of LUNA is 1.00 billion. The total market cap is around 940.92 million. And currently, it is trading at $0.9411.

What Happened to Terra Classic in 2022? 

Terra Luna experienced one of the most devastating crashes in cryptocurrency history in May 2022. Investor demand for UST redemptions increased as investors began to lose faith in the initiative, putting pressure on the peg. As a result, UST experienced a "death spiral" in which it continued to lose its peg, which increased redemptions and selling pressure. The value of the Terra Luna token (LUNA), which was connected to UST, also dropped.

The Terra Luna founder tried to intervene by burning LUNA tokens to re-peg UST, but it was too late. UST completely lost its peg and LUNA's value plunged to nearly zero. LUNA traded at a price of nearly $100 per token at its height in April 2022. By May 12, LUNA had practically lost all of its worth, falling to less than $0.01.

So in summary, Terra Luna experienced a "death spiral" in May 2022 where both UST and LUNA tokens dropped dramatically over a short period of time, essentially wiping out the entire project. It highlights the risks and volatility still present in the crypto market.

How about LUNA in 2023?

Terra (LUNA) is still in a precarious position going into 2023. Since the massive collapse of Terra (LUNA) and TerraUSD (UST) in May 2022, Terra Luna has been trying to rebuild. A proposal was passed to "revive" the Terra blockchain with a new LUNA token and burn the old one. The original Terra blockchain still exists and is branded as Terra Classic with the token LUNC.

The Terra blockchain is attempting to transition away from algorithmic stablecoins like UST and introduce a new fiat-backed stablecoin, TerraUSD 2.0, backed by real reserves. But this is still in the works.

There are concerns that Terra Luna may not be able to fully recover from the massive crash in confidence. Rebuilding the ecosystem and regaining user trust will take time and significant progress.

Going into 2023, Terra Luna will need to demonstrate that it has learned from its mistakes and can build a sustainable and trustworthy project. This means focusing on transparency, proper reserve backing, and prudent risk management. If Terra Luna cannot show real progress and relevancy next year, it risks continued decline and irrelevance in the crypto space. But if it can deliver on its plans and regain confidence, there may be a chance for LUNA to stabilize and slowly recover some value over time.

Features of Terra (LUNA)

Staking

LUNA token holders can stake their tokens within the consensus mechanism of the Terra ecosystem. Users who stake LUNA are eligible to obtain rewards on the Terra protocol, which are derived directly from exchange fees. Users must pay these fees if they move their balance from LUNA to a Terra stablecoin.

Governance

Having LUNA is also an excellent way to take part in the governance process of the platform. Staking your LUNA tokens allows you to create and vote on ideas for modifying the Terra protocol.

AirDrops

Another relatively hidden benefit emerges from keeping and staking LUNA tokens. This advantage will be provided to you in the form of airdrops. Whenever the Terra ecosystem welcomes new applications and the associated tokens, LUNA stakers are eligible to receive a proportional amount of those new applications and tokens as free gifts, known as airdrops.

Check out the current values of MIR and ANC crypto using Shrimpy if you're curious whether or not the Terra ecosystem airdrops have been successful for holders of LUNA. These two tokens, which respectively represent Mirror Protocol and Anchor Protocol, have been airdropped and have shown to be quite successful.

How to Buy LUNA Tokens? 

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including LUNA, users can now trade easily and seamlessly.

If you already have a CoinEx account, this is how to purchase and sell LUNA on CoinEx:

• To access your CoinEx account, visit the website or launch the app and enter your email and password.
• Put funds in your account to make LUNA purchases. You can deposit the funds via bank transfer, credit card, etc.
• Once you have funds in your account, you may buy LUNA by going to the LUNA trading page and choosing the trading pair you wish to use.
• Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for LUNA. Put in your order and the quantity you want to buy.