Buy Terra Classic

Terra Classic (LUNC) is a blockchain protocol that aims to create a stable, global payment system, through the use of stablecoins that are pegged to traditional currencies. What makes Terra Classic unique is the combination of the price stability of traditional currencies and the censorship resistance of Bitcoin. This allows for fast and affordable transactions.

The project began in 2018 and was launched in 2019. Initially, several stablecoins were available, pegged to currencies such as the US dollar and the South Korean won. However, after the collapse of the UST stablecoin in 2022, a revision took place. The original Terra blockchain was rebranded as Terra Classic, and the LUNA token was renamed LUNA Classic (LUNC).

The LUNC token played a crucial role in stabilizing the value of the UST stablecoin. The mechanism was designed to ensure that the price of UST remained pegged to the US dollar by creating and destroying UST tokens to balance supply and demand. Unfortunately, this strategy failed when UST lost its peg in May 2022, resulting in hyperinflation and a huge 99% drop in the value of the original LUNA token.

Who founded Terra Classic (LUNC)?

Terra Classic was founded by Daniel Shin and Do Kwon. Shin previously worked in large South Korean e-commerce platforms, while Kwon has experience in both large tech companies and startups. They saw the Terra blockchain as a means to promote the adoption of blockchain technology and cryptocurrencies.

Currently, the project is managed by Terraform Labs, led by Kwon. The team behind Terra Classic consists of several professionals with expertise in technology and finance.

Terra Classic can be used for the following functions, among others:

• Payments: Terra Classic makes payments easy and affordable with stablecoins. These can be used for both everyday purchases and larger transactions.
• Investing: LUNC offers investors the opportunity to profit from the volatility of a cryptocurrency recovering from a major crisis.

Terra Classic uses a Proof-of-Stake consensus mechanism based on Tendermint. In this system, LUNC token holders stake their tokens to validate transactions, for which they receive rewards. This promotes active participation and security of the network.

Security

Terra Classic’s network security has been validated by CertiK, a company specialized in blockchain verification and penetration testing. The audit highlights the network’s solid economic models and architecture.

Development and programming languages

Terra Classic has been developed with a focus on stability and usability, using programming languages suitable for building robust financial applications. This aligns with the founders’ vision to make blockchain technology more accessible.

Stablecoin mechanism

Terra Classic’s unique stablecoin mechanism is based on an algorithm that automatically adjusts the supply of stablecoins according to demand. Here, LUNA and stablecoins are traded at favorable exchange rates to increase or decrease the supply depending on demand.

LUNC, the token of Terra Classic, was initially the main token of the Terra blockchain. The main function of LUNC was to regulate the value of the UST stablecoin through a mechanism where LUNC tokens were burned or created to maintain the price stability of UST.

After the collapse of UST and subsequent hard fork in 2022, LUNC remains in circulation as the native token of the Terra Classic blockchain.

The following features make Terra Classic unique:

• Stablecoin support: Terra Classic provides a stablecoin mechanism pegged to various fiat currencies.
• Combination of traditional currencies and Bitcoin: Terra Classic uses a combination of the price stability of traditional currencies and the censorship resistance of Bitcoin.
• Post-crisis recovery: The way Terra Classic is recovering and evolving after the UST collapse makes it a unique object of study within the crypto space.

What is the difference between Terra Classic (LUNC) and Terra (LUNA)?

Terra Classic (LUNC) and the new Terra (LUNA) share many similarities, such as the basic blockchain design and the pursuit of a stable payment system. The main difference lies in their history and purpose: Terra Classic is the original blockchain that now focuses on recovery after the collapse of UST, while Terra (LUNA) represents a fresh start without the burden of previous problems.

You can purchase Terra Classic (LUNC) at Bitvavo, a platform accessible to both novice and experienced traders. Follow these steps to buy LUNC on our website or using our mobile app:

1. Log in to your Bitvavo account or create a new account.
2. Deposit money into your account by clicking "Deposit".
3. Go to the Terra Classic buy page.
4. Enter the amount in euros you want to spend or the number of LUNC you wish to buy and click "Buy".

After purchase, your Terra Classic tokens will be automatically added to your Bitvavo account. From this account, you can quickly and easily sell your LUNC coins, allowing you to react rapidly to price changes.

Store your Terra Classic safely in your Bitvavo account, where we hold the majority of customers’ digital currencies in offline managed cold wallets for maximum security. Enabling two-factor authentication (2FA) is highly recommended as an additional layer of security.

Want to store your LUNC coins in a personal wallet? Most software and hardware wallets support Terra Classic. At Bitvavo, you can buy LUNC and send it to an external wallet by adding the address to your Bitvavo account.