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The market is still reeling from the spectacular collapse of the Terra ecosystem in May 2022. The trouble started when Terra's algorithmic stablecoin, UST, lost its peg to the dollar, sending its sister token, LUNA, into a hyperinflationary death spiral. Within a week, the two tokens, previously among the top 10 cryptocurrency tokens, had become almost worthless, wiping out over $40 billion of investors' funds.
Do Kwon, the founder of Terraform Labs (developer of the Terra Blockchain), proposed a hard fork in an attempt to revive the project. The hard fork implementation resulted in a new chain with a native token called Luna (LUNA), and the original Terra blockchain's native token was renamed Luna Classic (LUNC).
With the market yet to recover from the debacle, Terra's back in the news again. This time, LUNC, the native token of the original Terra blockchain (Terra Classic), gained an impressive 400% in a month, launching it into the top 30 cryptos by market cap.
Is it the right time to return to Terra? First, let's analyze the recent price hikes of LUNA and LUNC and what they mean for investors.