KEY POINTS

  • Do Kwon previously said centralized stablecoins would just rug pull investors
  • Latest data shows increased investors' interest in Terra Classic following its collapse
  • Terra Classic was trading up 19 percent at $0.00007198 

Terraform Labs, the company behind the new Terra blockchain, appears to have been done with its first native token now called Terra Classic (LUNC) but holders are still trying to redeem the displaced crypto asset as seen by the 500 percent surge in the number of holders. Despite this, LUNAC's price is still wobbling.

Data from cryptocurrency aggregator CoinMarketCap revealed that Terra Classic attracted a lot of positive attention following the devastating crash of Terra's algorithmic stable coin UST and eventually LUNA, which wiped clean around $60 billion worth of investment. Based on the data. Terra Classic is the second most-searched crypto on the site as of Tuesday with LUNC as the most trending digital asset on June 3.

Moreover, interest among investors has surged since the historic crash. The total number of unique addresses on May 9 is just 1, 642 but it ballooned to 10, 266 on June 5, indicating a 525.21 percent increase in just several weeks and 560 percent in one month.

The crypto economy has been torn to shreds in recent weeks with hundreds of billions knocked off the value of the sector
The crypto economy has been torn to shreds in recent weeks with hundreds of billions knocked off the value of the sector AFP / Justin TALLIS

It is also worth noting that the number of Terra Classic holders significantly increased on May 14, just a few days following the collapse of the Terra ecosystem. Industry watchers speculate that the surge in the number of LUNC holders could be attributed to unsuspecting investors buying the crypto asset for pennies hoping to gain enormous profit when the algorithm stabilizes. But this may no longer be the case.

The surge in demand could be also due to the number of cryptocurrency exchange platforms still offering Terra Classic. A few months before the historic collapse Terra founder and Terraform Labs CEO Do Kwon urged investors to bet on UST noting that they should "not worry about getting rug pull by stable coins… if you keep on using centralized stable coins they will eventually gonna rug you… so start using UST now."

But we all know what happened a few months later. While it is interesting that more investors are holding LUNC, its price continues to list remarkable corrections.

Terra Classic was trading up 19 percent at $0.00007198 with a 24-hour volume of $344,228,667 as of 3:19 a.m. ET on Thursday, based on the data from CoinMarketCap.

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