Is Luna Classic a good investment?

Luna Classic is currently moving in sync with the current condition of the cryptocurrency market. However, since its launch, i.e. since May 2022, LUNC has increased by 8%.

LUNC has delivered returns every month except July and November since its relaunch. It outperformed all major cryptocurrencies, including its Fork Luna 2.0. It also outperformed “Merge” Ethereum. It has a solid community that acts like diamond hands when the price moves down.

Therefore, despite the collapse of LUNA 1.0, can LUNC be considered a good investment?

Some risk factors involved in investing in Luna Classic

  1. Terra Luna Classic depends heavily on the community to agree, but needs other investors to raise the price. For this to happen, the Terra Luna Classic blockchain would have to operate at an optimal level to encourage DApps to join the ecosystem. While there are some action plans, none of them have been implemented.
  2. LUNC is following the same patterns as 2 months ago, when it remained at a constant level near the peak and then fell by 60% over a 4-week period. Therefore the risk of it falling 30% less is quite high. All the more so since the Community has yet to fulfil the wider commercial and consumption purpose of the currency. Burning is not enough.

Therefore, those who have much of their investment in Terra Luna Classic are better off reallocating elsewhere. Diversifying your allocation will reduce the risk of loss by 100% without eliminating the possibility of very high returns. But those with zero allocations should certainly look at allocating a small portion with the assumption that 100% loss is possible if not certain.

Luna Classic is a good investment: factors in favor of LUNC investment

Luna Classic is supported by a strong community. The price of LUNC has increased since its launch. LUNC’s excellent performance so far is due to a concerted effort by the community to revive the coin. Community involvement went far beyond the fire (like Shiba for example).

community and Terra Rebels have executed LUNC Burn quite efficiently and against all odds, but the other plans to help increase the price of Lunc have yet to see the light of execution. However, we answer yes to the question: “Should I invest in Luna Classic?” The reason is:

  • The price of LUNC is lower and can give a great return once the price increases.
  • Macroeconomics are likely to improve and the community can further consolidate its gains.

Will Luna continue to be a good investment? It depends on what happens next.

If the community can evolve the currency beyond burning and listing differentiated use cases, it’s a great buy. We monitor the community on a daily basis and know this is the likely direction. However, we need more data to confirm whether this is indeed the case. This is why we moved $LUNC from Buy to Hold after Burn was implemented.

As we had correctly predicted on October 14th, Luna Classic fell (20% less on October 23rd). Trading volumes also fell as expected from $287 million on October 14 to $135 million on October 23.

  1. LUNC is likely to head even lower for now
    • Luna Community has no new initiatives at the moment and price pumps only occurred when there was decisive community action. In other circumstances, the price tends to fall gradually.
    • Macroeconomic conditions are likely to squeeze trading volumes further, so a pump is less likely now than was possible 4 weeks ago.
  2. LUNC is likely to move higher in a few weeks
    • The community has shown to be resourceful in proposing new ideas. There are some ideas on the Coinbase list and new apps to list and so on. If some of these go ahead, it will surely help the demand for coins to rise.

Therefore, unless someone is looking to trade in the short term, a sell or buy is not a good idea.

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