The Origin of 'The Moutai of the Cryptocurrency World'
'The Moutai of the Cryptocurrency World' refers to Luna Coin (LUNA), a term that originates from Luna Coin's performance and influence in the cryptocurrency market. Luna Coin is a virtual currency issued by the Terra blockchain project founded by Korean Do Kwon in 2018. Initially, the price of Luna Coin hovered around $1, but in 2021, its price skyrocketed to a peak of $119.5, with a market value reaching $41 billion, making it the fifth-largest cryptocurrency by market capitalization at the time, thus earning the nickname 'The Moutai of the Cryptocurrency World'.
Luna Coin is referred to as 'The Moutai of the Cryptocurrency World' because its performance in the cryptocurrency market is similar to that of Moutai liquor in the Baijiu market. Moutai liquor, as a representative of high-end Chinese Baijiu, is renowned for its high quality and scarcity, while Luna Coin has rapidly risen due to its high return rates and market recognition. The price fluctuations and market capitalization growth of Luna Coin have garnered significant attention and influence in the cryptocurrency market, akin to the status of Moutai liquor in the Baijiu industry.
The underlying mechanism of Luna Coin is its association with the TerraUSD (UST) stablecoin. Terra Company established a mechanism that allows 1 UST to be exchanged for a certain amount of LUNA, ensuring that the price of UST remains stable at $1. This mechanism has led to widespread attention and enthusiasm for Luna Coin in the market, driving its price surge.
After the crash, Luna 2.0 switched to a single-coin system, no longer linking to UST, with a total supply set at 1 billion coins and no inflation mechanism. The development direction is primarily focused on NFT, DeFi, and other areas.