Terra Classic and TerraClassicUSD are still growing in July against the odds.
When Terra Luna collapsed in mid-May, more than $40 billion was wiped from the crypto market. All cryptocurrencies suffered from the blow before the new Terra Luna network was launched before the end of the month.
Even though the Terra Classic network has lost its developers and the algorithm which kept the TerraClassic USD $1 peg, still investors are pumping prices.
But for how much longer?
Thousands of investors began buying up altcoins with more secure mechanisms like EverGrow Coin, and for now, these tokens offer a much clearer roadmap.
One of the biggest groups of investors who lost out were those with savings in the Anchor Protocol. The popular DeFi platform offered an APY up to 20% on TerraUSD deposits of any size.
But the sky-high APY couldn't survive a network attack, and TerraUSD lost its $1 peg while Terra LUNA tokens saw massive overinflation from around 350 million to over 6.5 trillion within a few days.
Reflection tokens are fast rising to restore faith in DeFi. Tokens like EverGrow Coin reward investors in the BUSD stablecoin from a 14% tax on all transactions – both buy and sell. Passive income from the BUSD rewards rely on daily trading volume, but when this is low that just means lower income and not the collapse of the network.
EverGrow Coin has been building utilities throughout the crypto crash. The LunaSky NFT marketplace, the Crator content subscription platform, and The Abstract cloud-streamed VR arcade in the metaverse are all designed to keep trading volume high when they launch this 2022.
Terra Classic and TerraClassicUSD are still riding high after pumping at the turn of July 2022.
Terra Classic is up 60% over the past month to a price of $0.0001083, while TerraClassicUSD is up 470% over the past month to $0.05. Terra Luna meanwhile is down 25% in the past month and down 5% in the past 24 hours to $2.02.
Many investors have been swayed by the news of a new LUNC burn tax which passed a proposal and will see 1.2% of each transaction kept back to burn LUNC. Many mistakenly hope the TerraClassicUSD token will regain its $1 peg.
However, both these theories will struggle with the fact that developers have fled the Terra Classic network and there is difficulty in getting proposals to implementation.
At present, LUNC and USTC are pumping on pure speculation. This is a difficult investment unless you have money to gamble.
Despite having paid holders a record-breaking $37 million in rewards, EverGrow Coin has a market cap of just $60 million – well below the $711 million market cap of LUNC and the $490 million market cap of USTC – but it arguably is much more secure and with a more robust roadmap to becoming a success in 2022.
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