Terra Classic (LUNC) has been on an incredible run for over a week, increasing investor confidence in the asset. As a result, more speculators are eventually getting on board the moving train. Regardless, renowned Terra whistleblower FatMan has predicted that the asset’s run will soon come to an end.
FatMan mentioned it on Twitter late Thursday night. According to his tweet, many investors who have jumped on the LUNC craze are unaware of market conditions and are assisting in asset price movement. FatMan said that the pump created by this mass demand would almost certainly be unsustainable in the long run.
“Consider this a warning… An alarmingly high number of ill-informed market participants have rushed into LUNC, fuelling a speculative pump that cannot be sustained. As SafeMoon et al. have proven,” the tweet says that scarcity without utility equals futility. FatMan then advised investors to only invest what they can afford to lose, highlighting the high probability of losses.
FatMan Advises Against Shorting LUNC
In response, one user stated that he would be shorting the asset, indicating his agreement with FatMan’s assertion. Nonetheless, FatMan cautioned against shorting LUNC. According to him, the best option is to avoid the asset entirely. He stated that he has no investments in the asset and no short or long-margin trading positions.
“It’s just; there are far too many crypto-illiterate people being misled – reducing supply only works if the quantity demanded remains steady,” he added.
FatMan’s tweet was in response to another anonymous analyst’s earlier warning. The analyst known as “lightcrypto” emphasized LUNC’s meteoric rise. However, he stated that the rally would not last and that the likelihood of a massive drop is high, especially given current market realities.
Despite these bearish forecasts, LUNC has maintained its rally, though its momentum has slowed. Although LUNC has been the most valuable asset over the last week, it has lost 1.7% of its value in the last 24 hours. With a market cap of $3.2 billion, the asset is still the 26th largest token by market cap.
The broader crypto market is experiencing a mild relief rally, with Bitcoin (BTC) and Ethereum (ETH) up 7.6% and 4.32%, respectively, in the previous 24 hours as of press time. LUNAtics expects LUNC to be carried along as the markets stage a brief recovery.
With the implementation of the 1.2% burn tax proposal fast approaching, some proponents see a future for LUNC, thus the increased demand. LUNC is currently worth $0.00052 at the time of writing, up 132% in the last seven days.