Assessing ChatGPT’s LUNC price prediction of $1 by March 2024

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Terra is an open-source blockchain payment platform that creates stablecoins designed to track the prices of fiat currencies. Terra Luna Classic refers to the original coin that is now in circulation after the establishment of a new Terra chain back in 2022.

LUNA is the native currency of the platform and has 3 main functionalities: Providing incentives for the platform’s blockchain validators, mining Terra transactions through staking, and ensuring the price stability of Terra stablecoins.

A crash, split, and a revival

Terra was a $40 billion digital asset ecosystem once upon a time, with both UST and LUNA claiming their spots in the top 10 cryptocurrencies. After the de-pegging of UST in May 2022, the prices spiralled to 0 within a week. This led to several investors losing their money.

While a lot of people lost faith in the project, there were many who decided to focus all their energies towards reviving the project instead. At the forefront of this group was Do Kwon, the founder of Terraform Labs. This movement led to a split and creation of 2 Terra blockchains: the original Terra network with the tokens Luna Classic (LUNC) and UST and a new blockchain with a native token called Luna (LUNA).

The “Terra Ecosystem Revival Plan 2,” as coined by Do Kwon, split and created a new blockchain with a fork and then distributed new tokens to the community members who had previously held LUNA and UST. Terra 2 or the new Terra blockchain was launched on 28 May 2022 and the old, original one was called Terra Classic. LUNA Classic was the native token of this old blockchain, whereas the newly launched network got LUNA and UST.

LUNA Classic: A deep dive

One of the foundations of LUNA Classic is its strong focus on decentralization and community governance. It also does not have a stable value pegged to any fiat currency whatsoever and allows the value to move as per market conditions. The token also has flexibility in terms of its tokenomics and use cases as it is not tied to any stability mechanisms.

Overall, the key vision of the Terra blockchain is preserved in the functioning of the LUNA C

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Author: Anjali Sriniwasan

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