Terra Luna Classic: Security Upgrades and Burning Offset by Price Slump
Terra Luna Classic (LUNC) is undergoing a series of security upgrades overseen by its developer, Genuine Labs. While the community applauds these efforts, LUNC’s price continues to disappoint.
Security First: Genuine Labs Takes Action
Genuine Labs’ bi-weekly report highlights its focus on enhancing Terra Classic’s security. The plan includes:
- Core Repository Upgrade: Ensuring compatibility with updated dependencies, is a crucial step for a healthy blockchain.
- Rigorous Testing: Extensive E2E and interchain tests guarantee seamless operation on the upgraded chain.
- Real-World Simulation: Launching a testnet mirroring the mainnet’s data ensures a smooth transition.
- Bug Eradication: A critical bug identified by Genuine Labs, potentially halting the blockchain, has been eradicated.
Read Also: XRP Price Update: Mixed Signals Amidst SEC Lawsuit and Inflation Woes
— Genuine Labs (@Genuine__Labs) April 10, 2024
Community Steps Up Burning Efforts
Independent of the security upgrades, the Terra Luna Classic community is actively reducing the coin’s supply. On April 9th, the total burn surpassed 110 billion LUNC, shrinking the circulating supply to 6.797 trillion.
Why Isn’t the Price Reflecting the Improvements?
Despite these positive developments, LUNC’s price performance remains a concern for holders. Some validators point to futures trading as a culprit.
Read Also: XRP Faces Potential Supply Shock Amidst Speculation of Token Burn
The Futures Market Theory
Community member Terra Haber suggests that LUNC and its algorithmic stablecoin USTC are being suppressed by futures markets. DailyCoin’s analysis of on-chain data from CoinGlass appears to support this theory.
A significant drop in open interest (OI) and trading volume for both LUNC and USTC in derivatives markets is observed. Additionally, the long versus short position ratio leans heavily bearish, with more bets placed on LUNC’s price going down.
A Double-Edged Sword
While the news of the security upgrade is positive, a critical detail was omitted from Genuine Labs’ report. A crash-worthy bug linked to the Wasm module was identified but not initially disclosed. This vulnerability could have been exploited by hackers.
We thought that the price was suppressed through futures in #LUNC and #USTC and collected from the spot market.
💠 Instant rises and falls in $USTC strengthen our thesis.
▪️ It is very easy to collect goods from spot markets in a market where investors open more positions in… pic.twitter.com/5lsoFdBCOe
— Crypto News Portal (@TerraNewsEN) April 9, 2024
The Takeaway
Security upgrades and community-driven burning initiatives demonstrate Terra Luna Classic’s commitment to improvement. However, the price suppression from the futures market and the undisclosed bug cast a shadow over the project’s immediate future. Addressing these concerns will be essential for LUNC to regain investor confidence.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
