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Terra LUNA Price Action Intensifies Following the New On-Chain Proposal

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VOC, voice of crypto, LUNA

After the spectacular crash-and-burn of the Terra ecosystem that saw the complete devaluation of (LUNA) and the de-pegging of its associated stablecoin (UST) in May this year, backers of the Terra ecosystem have since created a new and reborn network on the legacy of the old LUNA that crashed so unexpectedly.

They called this new cryptocurrency Terra 2.0 or LUNA.

LUNA Is Not LUNC

It is easy to confuse the difference between LUNA and LUNC since they are two different cryptocurrencies with similar names.

However, the difference between them is simple. While LUNC is called “Terra Classic” and is a cryptocurrency built on top of the original, crashed Terra blockchain, LUNA is called “Terra 2.0” and is a cryptocurrency built as a result of a hard fork from the original LUNA blockchain.

Meaning that LUNC and LUNA run on two different chains.

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The hard fork on the original Terra blockchain created a totally new and different blockchain that the new LUNA now runs on. It is also important to note that, unlike LUNC, LUNA has no associated stablecoins.

LUNA Price Analysis

At the time of writing, the price of LUNA made unexpected gains of about 43% when it rose from yesterday’s lows of about $2.51 to a high of $3.08.

However, the price action of Terra coin has begun to correct itself, moving back downwards after a pump of about 17% today alone. The price of LUNA now sits at $2.72, with a calculated 24-hour gain of about 11.5%.

Data showing statistics on Terra LUNA 

Data showing statistics on Terra LUNA | Source: CoinMarketCap

According to CoinMarketCap, the trading volume on terra coin has doubled in the last 24 hours, and the market cap is also up by double digits.

This increase in market cap has pushed terra coin further up in the rankings, making it one of the top 100 cryptocurrencies in the world at a ranking of #98th.

What Caused This Pump?

The simple answer is that nobody knows for sure.

After a relatively flat price action throughout September and early October, the behavior of LUNA’s price was an unexpected development.

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Furthermore, in recent times, there haven’t been any major news headlines about development activity or partnerships that could have driven this spike.

None except an announcement via a tweet from the Terra Governance Alerts handle on Twitter about the “Genie Rewards Distribution” grant from CoinHall that aims to incentivize Terra coin users and projects.

The Genie Proposal

According to the tweet by the Terra, Governance Alerts Twitter handle; the Genie protocol aims to let its users “meaningfully segment” their wallets based on wallet behavior and then incentivize these users via rewards.

According to the proposal, users can leverage Genie in several use cases, including but not limited to Targeted marketing, retargeting, and vampire attacks.

This proposal went up for voting and got approved. On approval, the users get rewarded with 60% of the collected funds via airdrop based on their on-chain activity and loyalty.

Overall, almost 5 million Terra coin was claimed as the 60% cut from the resulting airdrop, leaving 9.5 million LUNA to be returned to the community pool.

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Terra, Polygon, and Avalanche had the highest claim rates of the ten indexed tokens claimed from this airdrop.

 

 

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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