Can Terra recover from a hack?
Key Takeaways
- Terra blockchain was hacked in August 2023, shortly after it reached an all-time low.
- The platform has been on a downward spiral since it was relaunched in May last year.
- With the blockchain’s founder Do Kwon now in a Montenegrin jail, can it recover?
- A Terra price prediction says the coin will become worthless by 2030.
Any hopes that Terra’s LUNA would return to having the billion-dollar market cap and a place in the top 10 cryptos its predecessor had were wiped out when the platform was hacked in August 2023.
This news came just after LUNA sank to an all-time low on August 17.
The Terra (LUNA) cryptocurrency came into being in the middle of 2022. It was formed after the original version of Terra collapsed in May last year.
Terra was originally created to support the TerraUSD (UST) stablecoin. When UST became depegged in May 2022, it sent a shockwave through the market that crypto has not yet recovered from.
The old version of Terra became the Terra Classic (LUNC) blockchain, while the new version took the LUNA ticker handle.
On August 23, the blockchain’s website was down.
This news followed Terra founder Do Kwon’s arrest in March this year. The disgraced crypto entrepreneur has since been charged with eight offenses by American authorities. He has also been jailed by a Montenegro court for forging official documents.
Terra did not immediately respond to a request for comment
But what is Terra (LUNA)? How does Terra work? Let’s see what we can find out, and also take a look at some of the Terra price predictions that were being made as of August 23 2023.
Terra Coin Price Prediction
Let’s examine some of the Terra price predictions being made on August 23 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term Terra price prediction that said it would drop to $0.3985 by August 28 but recover to $0.4698 by September 22. The site’s technical analysis was bearish, with 24 indicators sending discouraging signals and just two making bullish ones.
| 2023 | 2025 | 2030 | |
|---|---|---|---|
| Prediction #1 | $0.83 | $1.45 | $4.31 |
| Prediction #2 | $0.2264 | $0.616 | $0 |
| Prediction #3 | $0.65 | $1.42 | $9.72 |
Terra Price Prediction for 2023
DigitalCoinPrice said LUNA could reach $0.83 this year, while CaptainAltCoin had it dropping to $0.2264 by December. PricePrediction.net thought Terra would trade at $0.65 in 2023.
Terra Price Prediction for 2025
Moving forward, CaptainAltCoin said that Terra would be worth $0.616 in 2025. DigitalCoinPrice said it would trade at $1.45. PricePrediction.net thought LUNA would reach $1.42 in two years time.
Terra Price Prediction for 2030
Looking at a more long-term Terra price prediction, PricePrediction.net had Terra trade at $9.72 in 2030. DigitalCoinPrice said it would reach $4.31 that year. CaptainAltCoin, on the other hand, did not have a terribly encouraging LUNA price prediction. The site said that Terra would become a worthless de facto dead coin by the start of the next decade.
LUNA Price History
Now, let’s examine the highlights and lowlights Terra price history . While we should never take past performance as an indicator of future results, knowing what the coin has achieved can provide us with some very useful context if we want to make or interpret a Terra price prediction.
For the purpose of clarity, we will be talking about the new LUNA coin, which was founded in May 2022.
LUNA split from what is now Terra Classic on May 28, 2022. The coin started as it was pretty much meant to go on, hitting what is still its all-time high of $19.54 before closing the day at $4.94. The coin then spent the rest of the year in a pattern of minor recoveries followed by major declines and it closed 2021 at $1.26.
Terra in 2023
The new year started well for Terra. A buoyant market saw it reach a high of $2.52 on January 21. Since then, though, it has fallen down. It fell below the dollar in May, and things got worse in June. It collapsed from $0.9367 to $0.7209 in the wake of the United States Securities and Exchange Commission (SEC) suing the Binance and Coinbase exchange on June 5.
Things went downhill even further on June 10, when Crypto.com’s announcement that it was suspending its American institutional activities saw it sink to $0.5669.
There was a small recovery to $0.7331 on July 17, but that was that. It sank to an all-time low of $0.3801 on August 17 before trading at around $0.4265 on August 23.
At that time, there were 355.2 million LUNA in circulation out of a total supply of just over one billion. This gave the coin a market cap of around $151.5 million, making it the 151st-largest crypto by that metric.
Terra Price Analysis
In the short term, Terra has not been performing as badly as one might expect. At the time of writing, it was up 12% from its all-time low. Perhaps more notably, the hack has not hit the price of LUNA as hard as it might have. The news came out on August 19, when LUNA was worth $0.4496. Since then, it has fallen 5%. Although that is not good, it is far from the near-40% loss it suffered between June 5 and 10.
Is Terra a Good Investment?
It is hard to say. There is an argument that one should buy during the dip. The problem is that we don’t know how long Terra’s dip will last, nor what it will recover to.
How the platform responds to the recent hack is crucial. It will also be worth seeing whether investors decide they can trust LUNA. After all, it is a spin-off from a crypto whose crash devastated the market. There may well be trust issues after people were let down by Terra’s previous incarnation.
Terra’s website being down at the time of writing will not help matters.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in LUNA.
Will Terra go up or down?
No one can really tell right now. While the Terra crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Should I invest in Terra?
Before you decide whether or not to invest in Terra, you will have to do your own research, not only on LUNA, but on other, related, coins and tokens such as Frax Share (FXS). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
Terra (LUNA) Explained
Terra was initially formed in 2019 by crypto entrepreneurs Daniel Shin and Do Kwon. As we have said, it supported the UST stablecoin. When the original LUNA collapsed, the Terra blockchain split.
Terra Classic took on control of UST, while the new Terra hosted decentralized applications (dApps).
Terra is supported by the LUNA cryptocurrency.
How Terra Works
Terra uses a Proof-of-Stake consensus mechanism. This means that people are selected to verify transactions and add blocks to the blockchain based on how much LUNA they hold.
LUNA pays for transactions on the blockchain. People can also buy, sell, and trade LUNA on exchanges.
FAQs
How many Terra are there?
On August 23 2023, there were 355.2 million LUNA in circulation out of a total supply of just over one billion.
Will Terra reach $10?
It might do, but not for some time. PricePrediction.net thinks it will reach that figure by 2031. Keep in mind that the new version of LUNA only traded at more than $10 on 28 May 2022.
What is Terra used for?
LUNA pays for transactions on the Terra blockchain. People can also buy, sell, and trade LUNA on exchanges.
Further reading
Dogecoin Price Prediction 2023: Proof-of-Stake Change Floated — What Does it Mean for DOGE?
GateToken Price Prediction 2023: Has Burning Helped GT Price?
Binance Price Prediction 2023: What’s Next for BNB After EU Woes?
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
