Luna Classic (LUNC) tokens on the old Terra chain – now known as the Terra Classic chain – are still circulating, and remain available on many exchanges. But with the algorithmic stablecoin terraUSD (UST) trading far below its dollar peg, and the ecosystem migrating to the new Terra chain, does the old Luna token still serve a purpose?
The question has increasingly come into focus as exchanges in recent days have listed both the old and new Luna tokens for trading. So far, however, traders have mainly questioned the purpose of the new Luna token, hinting that it has little value and few real use cases.
Among those asking was Darren Lau, founder of the Daily Ape newsletter and a former analyst at crypto investment firm Spartan Group, who asked on Twitter last week “What’s the value [proposition] for LUNA without UST”?
Others went further, even questioning the real intention behind launching the new token.
“The only reason to buy LUNA 2.0 is to qualify for the next airdrop of LUNA 3.0 after it goes to zero like LUNA 1.0,” Luke Martin, a trader and the host of the Stacks Podcast, wrote on Twitter earlier this week. Others agreed, with one user saying he has never heard of anyone who are “able to explain the use case of LUNA.”