However, it is difficult to predict whether the recent surge is a temporary fad or will it contribute to brighter days for its investors.
Terra Classic is priced at $0.000142 USD on Thursday, with a 24-hour trading volume of $1,001,400,194 USD. Terra Classic is up 55.56% in the last 24 hours. According to CoinMarketCap, the current market cap is $933,764,064 USD.
The token has a circulating supply of 6,554,906,175,581 LUNC coins.
On the surface, it might look like Terra’s Luna Classic is making a comeback. Although crypto Crashed into the abyss in May. The price of the cryptocurrency fell by more than 99.99%.
Terra, once a $40 billion digital asset ecosystem, broke down last month in what could be the biggest token collapse in crypto history.
UST, the largest algorithmic stablecoin ever, and its twin token Luna, which was supposed to stabilize the price of UST, fell to almost zero within a week.
Before the collapse, both UST and LUNA were among the top 10 cryptocurrencies. The Terra blockchain had to be halted twice during the crisis.
As countless crypto investors lost their life savings in death, developers working on Terra-related projects risked their livelihoods, and other blockchains, such as Polygon and Kadena, lured those devs with multimillion-dollar funds. Were were
A section of the community decided to stay and focus on reviving the project, with Do Kwon, founder of Terra blockchain developer firm TerraForm Labs leading the effort.
As a result, there are now two Tera blockchains operating in parallel:
– The old (original) Terra Network tokens have been renamed to Luna Classic (LUNC) and UST tokens.
– A newly launched blockchain with native token called LUNA.
Terra investors face taxman in India
Since India’s tax system is punitive for crypto investments, TeraUSD and Luna token holders who have received the new coin – known as Luna 2.0 – face a double whammy in the so-called airdrop.
Tax experts said they could be taxed up to 30% of the value of the tokens they received and would not be able to offset any gains in the new tokens.
Under the new crypto tax regime, effective April 1, any income from “transfers” of “virtual digital assets” will be taxed at a uniform rate of 30%. It doesn’t explicitly mention how the airdrop should be taxed, but Jay Sayata, a technology and gaming lawyer and executive director of policy at crypto exchange CoinDCX, Manhar Garegrat, said the distribution can be viewed as income and are subject to tax.
“The terms in the law are so vague, including the definition of virtual digital asset and the definition of transfer, that it would be open to trial by the tax department for challenge,” Sayata said. “They generally consider the most aggressive approach possible with a view to collecting higher taxes, despite the fact that such an approach may lead to absurdity.”
According to Rajagopal Menon, vice-president of Binance-owned WazirX, there were over 160,000 investors holding Luna on the exchange as of May 9, and by May 15 the number in India has increased by 77%. It is not clear how many more investors have TerraUSD.
“The increase can be attributed to the increase in buyers after May 9, where the buyer-to-seller ratio was 5:1. In terms of volume, May 11 and 12 saw the highest volumes at Luna – 53 million USDT for both days combined,” Menon wrote in an email.
Anush Bhasin, founder of crypto asset tax advisory firm Quagmire Consulting, said Luna 2.0 may fit into the current definition of airdrop gifts, so a flat 30% tax may not apply, but depending on the taxpayer’s income threshold or slab rate. Gifts are taxed. ,
with agency input