Here is the summary of the Binance TH Live event on LUNC, held by the BinanceTH exchange on June 18, 2024;

The event title was chosen very well; Lessons from the Past and Progress in the Future. 🚀

◻️What is LUNC coin? LUNC, or Luna Classic as it was known, was formerly called "LUNA".

  • LUNA is a protocol created by a Korean named Do Kwon.

  • This project is a Digital Token coin and chain layer with which we can create promotions.

  • Various projects or platforms aiming to create algorithmic stablecoins or UST; Can deposit money and earn interest with Anchor. Or you can buy synthetic shares with the Mirror Protocol.

💢 There were many people using the platform in 2021 and many protocols emerged that made LUNA successful. The value of LUNA coin is constantly rising. Many people were using LUNA and looking forward to its future.

❌ Until one day, LUNA was attacked and fell. And let's look back and see the lesson to be learned from this incident.

✔️ Luna's working mechanism uses an algorithm to create a virtual US Dollar currency called UST (Algorithmic Stablecoin); main currency is LUNA and secondary currency is UST. UST is always worth $1.

▪️ If UST falls below $1 (Depeg), LUNA coins are created (Mint - Mint) to bring the price of UST back to $1 (Peg). USTs are collected and burned (Burn) and the UST is brought back to $1 (Peg). In normal times, UST will always maintain its level at $1. You can always go back, even with some depeg.

⚠️ However, in May 2022, someone exploited this mechanism. He thought of a plan and transferred $80 million to sell UST for USDC coins until Depeg was formed, but UST was able to return to Peg in the early stages and users still had trust.

▪️ But soon the situation got worse. UST started to fall more frequently. Bad news started to spread and people got scared. Investors sold LUNA and UST coins one after another. A Death Spiral occurred.

When the value of UST dropped (Depeg), more LUNA coins were created, leading to high supply in the market. LUNA price dropped again. LUNA supply increased to 6.79 trillion units. Eventually the value of the UST and LUNA coins dropped to almost zero.

💠 The developers stopped the chain and this caused a lot of losses to investors.

At the Live event, the losses experienced by the participants from the collapse of LUNA and UST were touched upon.

➖ Participants were affected by this collapse in various ways. Some lost from UST; Some of them are from LUNA, but they also agree that they need to be more careful about the risks.

  • The most striking part of the event is; Possibility of USTC peg being brought back to $1. It was mentioned that LUNC could be saved if USTC comes back to $1. #USTC It was mentioned that there may be a chance if the supply is reduced to 3-4 billion units through burning.

🗣️ We see this crop as very valuable. It is very valuable that the chat event takes place on the BinanceTH exchange and that these sentences are said and shared on an official platform of the @Binance exchange.

▪️ We have a long way to go in LUNC; There are many developments that require us to be excited. At this point, patience will be our greatest strength.

#LUNC #BinanceTournament #CryptoTradingGuide #Megadrop $LUNC $USTC $LUNA