It turns out that LUNC, the native cryptocurrency of the original collapsed Terra ecosystem mainnet, has not been able to escape getting mauled by its bears.
Over the last week, the cryptocurrency has experienced a strong and consistent outflow of capital from its chain.
In the third quarter of the year, when the general crypto market was in the thick of the crypto winter, LUNC enjoyed relatively stable price action.
However, now that the crypto market is showing hints of improving conditions, LUNC has entered what can only be described as a free fall.
According to data from CoinMarketCap, LUNC's market cap currently sits at $1.45 billion. Its market cap at the time of writing is about $130 million in loss from yesterday's high of $1.58 billion.
This drop in the market cap of the cryptocurrency also had a direct influence on its price. Even more interesting is how despite the bullishness of cryptocurrencies across the market last week, LUNC recorded a reverse in price.
According to data from CoinMarketCap, while cryptocurrencies like Shiba Inu and Dogecoin recorded 15.52% and 94.3% gains over the last seven days, LUNC is down by -10.25%.
According to the chart above, LUNC rose along with the rest of the market and hit the $0.00027 zone. Soon after, however, the cryptocurrency began to decline, eventually hitting the $0.000199 zone after a -27.57% drop.
Despite the backing from the crypto exchange, Binance, the LUNC community's launch of several campaigns, and even a mechanism to burn LUNC tokens periodically, the cryptocurrency is only worth $0.00021 per token at the time of writing.
Compared to its $0.00031 price exactly one month ago, this would represent about a 48% drop in the price of LUNC.
There is no clear reason why the cryptocurrency LUNC has been dropping so steadily.
However, some reasons may be a reduction in investor confidence in the crypto and the controversy surrounding its founder, Do Kwon.
Ever since the Terra ecosystem collapse in May this year and the devastation that followed what is now referred to as the biggest crypto crash in the history of Defi, the confidence and trust of the LUNC's investors have waned greatly and is likely one of the factors affecting the price of the cryptocurrency.
So far, Kwon has not been found or detained, and his whereabouts remain unknown.
However, the lack of clear-cut crypto laws and the stagnancy of the South-Korean authorities' case against Kwon continues to stand as one of the biggest barriers to his capture and prosecution.
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