David Gokhshtein, the founder of Gokhshtein Media, believes LUNC could emerge from its “lottery ticket” status and make a comeback if the community can find a way to build a legitimate use case.
Gokhshtein recently tweeted that LUNC is owned by the community, with half of the members jumping in to gamble and the other half remaining those who suffered from the collapse. He believes that if the community can come up with a legitimate use case, it will be an impressive comeback.
According to U.Today, Gokhshtein described the LUNC token as a lottery ticket, similar to the classic musical chairs game for kids. He further explained that when the music stops, everyone must find a chair to sit on, but there are always fewer chairs than players. He observed that in LUNC’s case, the person with a full bag of these tokens is always the one who is left without a chair.
He also believes that LUNC, which has recently gained popularity following the collapse of the original Terra Chain, is primarily purchased by gamblers looking to make a fast profit.
After the collapse of the Terra ecosystem in May, the original Terra Chain was renamed Terra Classic, and on May 28, 2022, the genesis block of the new chain, Terra, was launched to handle future transactions (LUNA). The original native token, LUNC, was also renamed.
Huge Challenge Ahead
Terra Classic claims to be entirely community-owned and independent of Terra founder Do Kwon. Will Chen, a former Terra developer, raises some critical points: “Who are the LUNC whales? Who controls the network?” And how much ownership does “the community” have in comparison to a couple of bad actors who invested at asymptotic prices?
He predicted that it might be “hard to attract projects to build on Terra Classic until the rebels figure out who they’re working for.” He also emphasized the importance of clarifying the incentives as the 1.2% tax burn plan is set to take effect on September 21.
The two Terra tokens, LUNC and LUNA, came under renewed selling pressure as the legal drama involving Terra CEO Do Kwon took a new turn. Kwon was thought to be in Singapore at the time. However, the Singapore police stated that he was no longer in the country, proving otherwise.
However, both tokens were up 2.2% and 3.6% at the time of publication.