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    Home » LUNA CRYPTO RECOVERY – IS IT POSSIBLE?
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    LUNA CRYPTO RECOVERY – IS IT POSSIBLE?

    WALEED QURESHIBy WALEED QURESHIJuly 26, 2022No Comments4 Mins Read
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    LUNA CRYPTO RECOVERY – IS IT POSSIBLE?
    LUNA CRYPTO RECOVERY – IS IT POSSIBLE?
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    Before the Luna crash there were around 350 million Luna tokens in circulation.

    In the wake of Terra’s collapse many investors are asking: is a Luna crypto recovery possible?

    At the beginning of May, the Luna token was trading at over $80. Now Luna is worth $0.0001441. Can Luna recover from this? It’s possible.

    But first it’s important to understand why Luna crashed to get a realistic idea of how Luna can recover.

     

    Why did Luna crash?

    On May 5, Luna hit a price of $88. One week later it had fallen 99% to a price below $1. Just a few days later it had fallen 99% yet again and is currently trading at $0.0001441.

     

    How and why did Luna crash?

    Cryptocurrency prices are determined overwhelmingly by supply and demand. Yet the biggest factor in Luna’s collapse was inflation. Before the Luna crash, there were around 350 million Luna tokens in circulation. Now there are over 6.5 trillion.

    The Luna supply has increased around 1,857,000% in just a few weeks. This hyperinflation more than anything is what caused Luna to crash in price.

    The exact details of why Luna crashed are to do with the algorithms that underpinned Luna and the Terra stablecoins like TerraUSD (UST) and others pegged to different world currencies. TerraUSD and Luna were interchangeable allowing UST holders to exchange 1 UST and mint $1 worth of Luna, and vice versa. This mechanism created arbitrage opportunities whenever UST drifted to the downside or upside from its $1 peg.

    No one knows whether there was a specific attack on Luna (there are rumours). But in short, a huge volume of UST was rapidly exchanged for Luna, creating never-before-seen hyperinflation.

     

    Will Luna recover?

    The above helps to put the question ‘will Luna recover?’ into context.

    If Luna were worth just $1 it would have a market cap of $6.5 trillion. That’s more than five times bigger than the entire cryptocurrency market – currently $1.24 trillion.

    The only way for Luna to recover to a price of $80 would be to burn enough Luna tokens to bring the circulating supply back down to around 350 million.

    This method has been suggested already by the Binance CEO, Changpeng Zhao. However, the Terra founder Do Kwon has a different proposal. Do Kwon instead intends to fork a new Terra blockchain without UST, with new Luna tokens airdropped to disaffected investors.

    The vote on a new Terra blockchain is expected to be decided on May 18 and – if successful – the new Terra blockchain will launch by May 27. What will happen to the original Luna token – to be renamed Luna Classic (LUNC) – is yet to be seen.

     

    What’s a safer buy than Luna?

    BUSD has emerged in recent days as the most secure and transparent stablecoin in the cryptomarket. BUSD has leapt into 7th place in the crypto market cap rankings in the last few weeks.

    UST attracted huge volumes thanks to its Anchor Protocol savings platform, which paid up to 20% APY. BUSD does have a 10% APY savings protocol, but such high returns are only possible for deposits under $2,000.

    Instead, the cryptocurrency EverGrow Coin has emerged as a great alternative to Luna, as it pays out BUSD rewards daily to investors. Since September last year EverGrow Coin has paid out $37 million to investors thanks to a 14% transaction tax on EGC buy/sell orders – 8% of this is distributed every 6 hours to investors.

    On a regular trading day of around $3 million volume, this means $240,000 is made available as passive income in BUSD. EverGrow Coin is one of the most transparent cryptos in the space with the founders only receiving payment via the same BUSD rewards mechanism as other investors – you can view their wallets on bscscan.com.

    An ambitious roadmap will see an NFT marketplace, content subscription platform, crypto wallet and metaverse integration using EverGrow Coin as the native token before the end of 2022.

    The expected volume will both raise the EverGrow Coin price dramatically from its current $0.0000002131 while paying BUSD passive income to investors along the way.

    Binance CEO crash in price. cryptos currencies hyperinflation opportunities TerraUSD
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