- Is Terra Luna set to pump or dump.
It's been a month since the release of the new Luna tokens
since the catastrophic Luna USD crash.
And while old Luna Classic has seemed to stabilize
at around one 10,000th of a penny.
The new token has nose dived from about $19
to a low of a buck 50, but that's not too much
of a surprise given Bitcoin's price action
over the last two months and the old community not on board
to jump ship to the new project,
given that their old investment is still in shambles.
And now the question is,
is with Bitcoin stabilizing around 20 K and Do Kwon buzzing
on his Twitter about all of the new partnerships
that the new chain has, is Terra set to pump
or is it going to keep diving down deeper
into the crypto abyss.
Since Do Kwon has completely abandoned the old token
and the community that held onto it, the holders
of the token and the ones that still believed in it,
keep pushing for new proposals.
The major proposal on this direction that was passed
is the Burn Proposal for Luna Classic, creating a 1.2% burn
or tax fee associated to all transactions for Luna Classic.
And this is set to bring the supply down to 10 billion.
What there's never enough supply of though is likes
on this video.
So be sure to hit that like button.
Now, this burn or tax has to be implemented
on different exchanges where the transactions
are taking place.
So far, the centralized exchange called CoinInn
has already implemented this tax fee structure
and they've already burned 1 million Luna Classic tokens.
Additionally, they plan on burning
an extra 10 million tokens if they end up reaching
a 100 million tokens burned.
The next proposal to pass was the Distribute 50%
of Transaction Fees to the Community Pool
which essentially will put 50% of all transaction fees
in the community pool, of which 35% is to be burned
on a monthly basis,
10% to the Terra Classic ecosystem developers,
and 5% to be retained in the community pool
for core Terra Classic development.
This proposal got over 10 different validators on board
and we're starting to see more validators in support
of this revival.
And the community pool itself has increased
by over a million in the last couple of weeks,
reaching a total of over 11 million Luna tokens.
So who are the people behind this current core dev team
mentioned in these proposals?
The current team is part of the Terra Rebels,
a Luna Classic holder community over at Discord,
who have taken it upon themselves
to revive the old Terra ecosystem.
The goal of these rebels is to make the full token
community driven as well as the development of the project.
But the thing is, is that the classic Terra network
is still essentially ran by Terraform Labs and Do Kwon.
So, even if these proposals are passed and supported
by some of the old validators, Do Kwon and Terraform Labs
have to support them to be able to run
on the classic network.
And so far they've been silent on the matter,
only promoting the new network.
The rebels have been testing these proposals on Testnet
and the ultimate plan is to migrate the servers,
even if Do Kwon and Terraform Labs do not support it.
And essentially this could be what the community pool
is saving up for.
Another proposal is to re-enable staking on Terra Classic
and the proposal states that staking to be resumed
on current active validators for 60 days
before allowing new validators to be created.
And this is to bring back the voting rights of the holders
of Terra Classic and the proof of stake chain.
This will also lock up a huge amount of Luna Classic token
for at least 60 days which should help stabilize
the price of Luna even more.
So, with a small dev team
and no support from Terrachain Labs and Do Kwon,
the question then becomes how far
can a self-driven community go with these plans?
And this all depends on the support
of not only the exchanges, but the validators
that are going to get these changes implemented.
But the Terra Classic community has always been strong
and a large portion of the holders are still pushing
for a revival of some kinds.
It's worth noting that the burn address
that started this all has accumulated
over 1 billion Luna Classic tokens.
Furthermore, according to calculations done
by a Twitter account, HappyCattyCrypto,
the current burn and tax rates would mean
over 24 billion tokens burned per day
based on transaction data from two weeks ago.
The Luna Classic token has also seen positive price action
since these proposals passed.
The price of the token went up almost 50%,
which isn't saying much from where it was,
but it's a start in the right direction.
The market cap also went up to over 700 million
at the time of this recording.
However, the circulating supply
is still over 6.5 trillion Luna Classic.
So it's going to need at least a few months
to see where all of this leads.
Another important factor that I want to mention
is about the main Binance withdrawal wallet for Tara Classic
which according to Terra finder has been accumulating
over 2.6 trillion Luna Classic tokens
as well as over a billion USTC tokens.
Now this could all be due to the demand
of the token surging again
or some behind the scenes action going on
that we don't know about
but for now, this is just speculations
for a hopeful Terra Luna community.
And if you ask me, the rebels are going to have to migrate
to new servers, to ditch Do Kwon and Terraform Labs,
to make the network truly community driven
and for them to pull off the goals that they want to.
It's in Do Kwon's best interest for the Terra Classic
not to succeed, which is why I created
a whole new Terra chain to begin with.
And if Terra Classic does get up and running successfully,
the new Terra is at risk of projects
choosing the old Tara Classic versus the new one,
because why would you wanna build on a project
that had a founder that robbed investors
of billions of dollars?
Recent investigations from the SEC has shown
that Do Kwon has been cashing out 80 million per month.
And it started a few months ago
before the collapse of Terra and UST.
And according to the Twitter account FatManTerra,
Do Kwon also cashed out over $2 billion in UST
by converting them to the stable coin, MIM
through the exchange, Abracadabra's Degenbox.
If this is true, this means that Do Kwon deliberately
let these yield farms deplete the anchor protocols reserves
to cash out the $2 billion in UST to first MIM token,
and then to further convert them from USDC to USDT.
And this isn't any official investigation,
it's just people over on Twitter,
looking through the transactions line by line
of the internal wallets, linked to Do won and TFL
and I'll link the post down below
so you can judge for yourself.
When looking at all of this,
I don't think Do Kwon ever really cared
for the Terraform community to begin with.
So I don't think he's going to support this old community
for any of these proposals
and even if he did the old community is so angry at him
that they wouldn't have faith in him to begin with.
So the best decision's just going to be to build
on new servers and to try and recruit more people
into the dev team to keep strengthening the rebel community.
And if they can pull this off, I'll be bullish on Terra,
but in the short term, the odds are greatly against them
and they are fighting an uphill battle.
As for the new Terra chain,
I don't think this is going to last given the track record
of Do Kwon and Terraform Labs.
At this point, you're essentially investing
in an organization ran by criminals
and I think that there are many safer avenues
to hedge your bets on in this bear market.
But let me know down in the comments below,
are you bearish or bullish on Terra Classic and Tara Luna,
and as always, thank you for spending your time
with me today.
Be sure to like and subscribe on your way out.
Thanks for watching, and I'll see you next time.