Recently, a lot of information about the LUNC currency has spread, and many hope for its rise and return.
But I love the beginnings of things and knowing their origins, so I will tell you its story.
Chapter One: The Beginning and Ambition
In 2018, a very ambitious young South Korean named Do Kwon emerged. His dream was big: he wanted to create a decentralized financial system that anyone could easily use, without the need for banks or governments.
With his partner Daniel Shin, he founded a project called Terra. The basic idea was simple but clever:
Creating a stablecoin called UST, which is always priced equal to the dollar, but it does not rely on real money, but rather on an "algorithm" that controls the balance between UST and a second currency called LUNA.
Chapter Two: The Rocket Rise
From 2020 to 2021, the project began to achieve amazing success.
The price of LUNA rose from almost zero to tens of dollars.
Then to over 100 dollars.
The project entered strongly into the world of decentralized finance (DeFi), and people began to invest their money in it seeking quick and large profits.
Do Kwon became a star in the crypto world, speaking confidently and sarcastically about other projects, describing himself as "undefeated."
People believed him, and billions flowed into his project.
Chapter Three: The Thunderous Fall
In May 2022, the nightmare occurred.
The UST currency, which was supposed to always equal one dollar, suddenly lost its stability.
People began to feel scared and started selling UST quickly, and with each sale, the system was issuing new LUNA coins in an attempt to maintain balance.
But that did not fix the situation, but rather flooded the market with trillions of LUNA coins, until it became almost worthless in just a few days.
Many investors lost all their money, and some committed suicide.
What happened was described as "the biggest collapse in the history of cryptocurrencies after Bitcoin."
Chapter Four: Escape and Division
After the collapse, Do Kwon disappeared. Arrest warrants were issued against him from South Korea, then from Interpol.
He kept fleeing from one country to another until he was arrested in 2023 in Europe with a fake passport.
In the meantime, the Terra community split:
A part decided to continue trying to save the old network, changing the name of the currency from LUNA to LUNC (Luna Classic).
And a second part created a new network called Terra 2.0, and a new currency called LUNA (the current one).
Chapter Five: Now… Attempting to Return
The LUNC currency remained, but its price is very low.
There are community efforts to burn coins and reduce supply in an attempt to raise the price again.
But the project lost trust, and the future remains uncertain.
Despite this, some investors are still betting on the currency's return one day.
The fate of the founder
After the collapse of the LUNA and UST currencies in May 2022, South Korea began an official investigation against him.
An arrest warrant was issued against him for financial fraud and violating capital market laws.
Interpol listed him on the red notice as a wanted person internationally.
He fled from South Korea and moved between several countries using fake passports.
In March 2023, he was arrested at an airport in Montenegro while trying to travel with fake documents.
Currently imprisoned in Montenegro awaiting an extradition decision.
Both the United States and South Korea are demanding his extradition for trial.
He has not yet been tried, but he faces massive financial cases that could lead to years in prison.
He still denies responsibility for the collapse, claiming he did not intend to commit fraud.