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Coinbase Suspends WLUNC, USTC Cryptos Ahead of Terra 2.0 Launch

Source: Adisak Riwkratok / Shutterstock
It’s another bloodbath today in crypto markets. As of early afternoon trading, the entire crypto market has shed another 4%, signaling this selling pressure may be far from over. For investors in a…

Source: Adisak Riwkratok / Shutterstock

It’s another bloodbath today in crypto markets. As of early afternoon trading, the entire crypto market has shed another 4%, signaling this selling pressure may be far from over. For investors in any of a number of stablecoin projects, such as Wrapped LUNA Classic (WLUNC-USD) and TerraClassicUSD (USTC-USD), it has been cataclysmic. The WLUNC crypto is down more than 12% over the past day, with the USTC crypto seeing another massive 44% drop over this period.

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These incredible moves to the downside come as Coinbase (NASDAQ:COIN) announced it would suspend trading for these tokens on its platform. Many investors expected this announcement. However, the ultimate removal of trading capabilities is a big deal. Notably, users can still withdraw and deposit tokens for the time being.

Additionally, other crypto exchanges have made similar moves. Terra’s ecosystem has become too toxic to touch for almost any major exchange.

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Let’s dive into what investors may want to make of these moves, particularly ahead of Terra’s relaunch as Terra 2.0.

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Is the WLUNC Crypto a Buy?

There may still be some investors taking a look at the WLUNC crypto as a potential buying opportunity in this environment. After all, Terra Classic (LUNC-USD) is now trading for less than a penny. This project was among the most valuable projects in the world just weeks ago.

The launch of Terra 2.0 brings about a new ecosystem, without the now-notorious algorithmic stablecoin. The old LUNA crypto now trades as LUNC, also taking on a new name, Terra Classic.

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Wrapped LUNA Classic, or WLUNC, is a derivation of the LUNA token, which allows it to be traded on the Ethereum (ETH-USD) blockchain. Accordingly, this token has gained some attention, as there still may be use cases for wrapped LUNA on Ethereum. Ethereum’s ecosystem is the largest in the crypto world. Perhaps some demand will provide upward mobility for this overlooked crypto.

That said, right now, I think any of these Terra-related tokens are too risky to consider. This is not a market that will favor gamblers. For those even thinking about considering these tokens right now — just don’t.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Coinbase Suspends WLUNC, USTC Cryptos Ahead of Terra 2.0 Launch appeared first on InvestorPlace.

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