The crypto market saw a considerable dip last Friday due to the Silvergate Bank Besorging and Luna Classic (LUNC) was no exception. After a 10% fall, prices stabilized around the mid-$0.00014s. Market Predictions remain uncertain and negative.
Projected Price Movement – Will LUNC Keep Going Higher?
The former support area at $0.0001550 is now likely to become a point of resistance. Traders also keep an eye on the $0.00014 level which may represent a floor in the near future. With the crypto market calming down ahead of a busy week of macro events, including US job data and testimony from the Fed’s Jerome Powell, LUNC investors hope the digital asset can continue to find support at this level as it did last Friday.
If the support area fails, it is possible LUNC will retest the late 2022 lows of $0.000127. This would constitute a 40% decline from the 2023 highs of around $0.00021.
Singapore Launches Investigation Into Terraform Labs
Crypto news sources reported Monday that Singaporean authorities opened an investigation into Terraform Labs the company behind the Terra blockchain project. Terraform Labs was originally incorporated and located in Singapore, where the blockchain’s creator Do Kwon had been residing for awhile. Do Kwon, who is from South Korea, is now back in his home country, which is the birthplace of the Terra blockchain. The news of the investigation is not surprising given that Do Kwon was previously accused of fraud and embezzlement by his own brother.
Given the situation, investors should be wary and encouraged to do their own research before making any investment decisions.
Back in May of last year, the Terra blockchain ecosystem experienced a devastating event that caused a $40 billion loss in the Decentralized Finance (DeFi) sector. This occurred when algorithmic stablecoin UST lost its peg to the US dollar, which in turn set off a hyperinflationary spiral of the Luna (LUNC) token. Do Kwon He, a Korean wanted by the police, is believed to have been behind the incident, and is now in hiding in Serbia. The US Securities Exchange Commission has issued charges against him for his involvement in the Terraform Labs Fraud, having laundered over $100 million in Bitcoin.
With LUNC’s long-term prospects looking bleak, investors may want to explore alternative tokens to diversify their portfolios. Aside from the well-established cryptocurrencies like Ethereum, which has a thriving and rapidly growing ecosystem, there are also a variety of layer-2 scaling options such as Polygon, Arbitrum, and Optimism. Presale tokens also present a great risk-reward ratio and have been known to yield the highest returns for those that got in early. Cryptonews Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023 to help investors decide on their next moves. The list is updated weekly with new altcoins, ICOs, and other information.
