On June 27, a hacker group called ‘Anonymous’ stated they were looking into Terra founder Do Kwon’s mischiefs. If you don’t know, ‘Anonymous’ is the name of hacker activists famous for exposing governmental corruption. Since the news broke out, Terra Classic’s price started rising like a phoenix. In the last 24 hours, it has lost a zero from the decimal places and has a current price of $0.000152.
Terra Luna Crash Calls Out for Investigation
After seeing its all-time high of $119.18 on April 5, 2022, Terra Classic (LUNC) went on a downward spiral. On the fateful date of May 9, 2022, Terra Luna crashed after losing its algorithmic peg to the dollar. After staying at a price of over $100 for several days, the sudden fall of Terra Classic was unexpected for most investors. Many believe that the Terra Luna crash was the reason why investors lost their trust in the crypto industry. There was an extremely negative impact on the crypto world, and even heavy-hitters like Bitcoin and Ethereum experienced a fall like never before.
It is worth noting that Do Kwon is a software engineer who has already worked at prestigious companies like Apple and Microsoft. Although Do Kwon has maintained that he hasn’t profited from the Terra crash, some people, like the CEO of Binance Zhao and founder of Ethereum Vitalik Buterin, believe otherwise. Therefore, ‘Anonymous’ has taken it upon itself to figure out if Do Kwon is responsible or not.
Why Terra Collapsed, and did Do Kwon Withdraw 2.7 Billion?
Terra Classic Losing Zeroes Fast
Do Kwon has hard-forked the Terra blockchain and created two versions of Terra tokens – Terra Classic Token, LUNC, and Luna 2.0 Token, Luna.
Most of the Dapps moved to the new Terra network, and Terra Classic Token was supposedly obsolete. However, the recent Terra Classic rally was confusing but also promising for investors.
It seems as if the announcement by the hacker activist group was the reason for the sudden price rise and Terra Classic losing a zero.
Despite the price appreciation, people should take a few things into account. For instance, the trading volume was really high over the last 24 hours because of retail trader activity.
The trading volume was so high that it is recorded as the most substantial LUNC surge since the token was re-launched.
But one should take into account that most traders were retail investors who influenced the price rise.
After looking at the whale’s metrics, it is clear that whales did not participate in the recent buying spree.
However, Terra Classic has been rising fast recently, which can trigger investments from other sections of the investor base.
Conclusion
Whatever the reason for the rise in Terra Classic’s value, it presents investors with an excellent opportunity to invest. As there is no apparent reason or significant basis for the price rise, one needs to be cautious while making any investment.