“If Luna Classic can reach one dollar, I'll be rich!” says someone who just bought one hundred million LUNC using their life savings.
“No you won't!” says everyone else.
“Just watch me!”
What is Luna Classic?
Luna Classic is the newest way to lose your money in crypto. It's also a way to make gains too. It's a little like the casino. Okay, it's exactly like the casino.
Luna Classic was born when algorithmic stablecoin (Terra) depeged from the dollar during a market crash. Terra was connected to another token called Luna, and these tokens were interchangeable. Long story short, the algorithm mass printed a large supply of Luna coins, and tanked the price of Luna straight to zero. The creator wanted to make a new Luna blockchain, and the original Luna blockchain was renamed to Luna Classic.
If you want the juicy details you can read all about what happened with Terra and Luna
Now, crazily enough, the creator of Terra and Luna, Do Kwon, is wanted in 195 countries. If that doesn’t give you confidence that Luna Classic is a good project, then I don’t know what will!
How Can Luna Classic Reach a Dollar?
First, we need to know about supply and market cap.
Supply is the number of LUNC tokens in circulation.
Market cap is the total value of the project. You can find market cap by multiplying the supply by the current price. Similarly, you can find the price by dividing the market cap by the supply of coins in circulation.
Using this, you can “predict” the price of any cryptocurrency
Let’s take a look at some the stats of Luna Classic, shall we?
Luna Classic has a circulating supply of 6.15 trillion. Its market cap is 1.7 billion and that makes the price $0.00028 per LUNC.
Doing some math, that means LUNC would need a 6.15 trillion dollar market cap to reach $1.
That’s more than Bitcoin, Ethereum, and all other cryptocurrencies combined. It’s more than Tesla, Apple, Microsoft, and Google combined. It’s about 11 percent of the total market cap of the entire United States stock market, and about 60% of the market cap of gold.
That seems like way too much, don’tcha think?
We’ll have to take some other route.
Ways Luna Classic Can Reach a Dollar
Keep in mind this is only for fun. There are strong odds that Luna will never reach a dollar or even a penny. However, this is crypto and it seems like anything is possible.
These are potential ways Luna Classic can reach a dollar.
More People Need to Buy LUNC
The easiest way to increase the price of Luna Classic to a dollar is for more people to buy it!
When there is a large demand for something, and the supply is low, the price of that something will increase.
When you buy cryptocurrency there is someone on the other side selling you that cryptocurrency.
If there are a lot of people trying to buy LUNC, and not enough people on the other side selling LUNC, then the buyers have to out bid each other to get one of the sellers to sell their token to them instead of someone else. That would make the price of LUNC go up.
It’s pretty basic economics. When there are more buyers than sellers the price goes up.
So, how do we get more people to buy Luna Classic?
Well, you have to shill it to all of your friends!
Call up all of the millionaires you know, and tell them that you can make them a billionaire, because what’s better than a million? A billion.
A million dollars can buy you 3.5 billion LUNC. Imagine LUNC hits one dollar. You would have 3 and a half billion dollars!
Now, keep imagining because that’s as close to reality as it’s going to get.
Don’t really do this. Don’t shill LUNC.
Burning the Supply of Tokens
Lately, there has been a bunch of talk about burning the supply of tokens
Burning cryptocurrency is when you permanently remove tokens from circulation by sending them to a wallet that nobody has access to.
You would want to burn tokens to create a deflationary event, where by making tokens more scarce, you make them more valuable, and more value means a higher price.
Remember before, we needed to reach a 6.15 trillion dollar market cap in order for LUNC to hit a dollar at this current supply.
So, what if we got rid of some of the supply so the market cap doesn’t have to get that high? Genius!
Recently, there has been a burn fee implemented of 1.2% of each transaction. That means if you send 100 LUNC to someone, then 1.2 LUNC tokens will be permanently removed from the supply.
So, if enough tokens get burned then there won’t be as much of a supply, and the price will go up.
There’s just a bit of a problem with this.
6.15 trillion (6,151,072,613,161 the exact number of LUNC) is a lot of tokens, and 1.2% is not that much. Just look at the commas. It’s like 60 times more than stars in the Milky Way Galaxy.
Let’s do a little math with our $1.7 billion market cap, and a price of $0.00028 per LUNC.
If we sent the entire circulating supply of LUNC, 6.15 trillion, in a single transaction, then about 73.8 billion tokens would be burned. Sounds like a lot, right?
That leaves 6.076 trillion tokens still in existence. If we use the current market cap then the price per LUNC would be $0.00028.
Wait, but that’s the same price! Yes, because 6.15 trillion tokens is a lot of tokens!
To make any sort of movement, we would have to burn a significant portion of LUNC’s supply.
At the current market cap, if around half the supply of Luna Classic was burned the price would be $0.0005. That’s half of a tenth of a penny, which itself is a hundredth of a dollar. It’s so small it’s hard to comprehend. Thankfully I paid attention in math class.
In order to reach a penny at this current market cap, we would have to burn about 97.2% of LUNC tokens. That’s around 5.9 trillion coins, leaving about 170 billion left over.
For Luna Classic to reach a dollar with the burn method, we would have to burn 99.97% of all LUNC tokens. That would be about 6.1493 trillion out of the 6.1510 trillion tokens, and would leave about 1.7 billion remaining.
If you’re getting lost in the math here, LUNC is probably not for you.
Another thing is, if 99.97% of LUNC tokens have been burned, you probably won't be holding as many as you are now. And if you are, then 99.97% of tokens probably haven't been burned.
A Combination of People Buying and Burning Tokens
Well, what if a bunch more people jump into LUNC and the market cap goes up?
Let’s use 5 billion as an example. That’s almost 3 times the current market cap, and the price would be $0.00081. The amount of coins needed to be burned to reach a dollar would be 6.145 (about 99.91% of the supply)
What about 41 billion? That’s Luna’s all time high. A 41 billion dollar market cap would make the current price $0.0066. To get LUNC to a dollar would require a burn of around 99.33% of the supply of tokens, about 6.110 trillion tokens.
Lastly, let’s check out 100 billion. Only the elites have ever gotten this high. Maybe Luna Classic will be elite one day, who knows?
100 billion in market cap would have the price being $0.016. Yay! We’re at a penny! Now we just have to burn 98.37% of the supply to reach a dollar! Only a measly 6.050 trillion LUNC tokens!
Since the burn tax was implemented, the highest day on Binance was about 500 million LUNC burned. Even if that happened every day, to burn 6 trillion tokens it would take about 12,000 days, or almost 33 years.
So, it’s possible with some patience.
Is It a Good Idea to Invest in LUNC?
All we need is a few more whales, to burn basically the entire supply, and maybe sprinkle in some hyperinflation and LUNC to a dollar, baby! What's not a good idea about that?
I'm kidding. I hope that's obvious.
Personally, I think it’s a terrible idea to invest anything into Terra Luna Classic because it’s a dead project and constantly is pumping and dumping
“Influencers” shill this coin so hard because they have invested a lot into the coin, and are now panicking trying to get their funds back.
You see, when a coin pumps it means that there are a ton of people trying to buy it, but someone has to be on the other side selling.
The people on the other side are the shills; the people who you see on Twitter and TikTok and wherever else telling you that LUNC is a good investment. It’s not. It’s a way for them to dump their supply on you.
And when the price inevitably drops way below the price you bought at, you will panic sell to recoup at least a little bit of your money, but sadly most of your initial funds are gone. Right into the hands of the shills.
Anyway, that’s just my opinion. You do you.
If you're interesting in learning about reputable cryptocurrencies, you can start with Polygon