Is It Time to Swap LUNC for USDT?
The Terra blockchain lost the trust of crypto traders when the founder, Do Kwon, was accused of a $40 billion fraud. The network underwent a hard fork in 2022, but it’s still struggling. Does that mean now is the time to get rid of any LUNC tokens you might have?
It’s not only about moving these coins out of your wallet but deciding on the currency to acquire. Stablecoins could be a smart way to preserve your funds until it’s the right time for a big move. In this article, we’ll discuss whether you need to perform that LUNC to USDT exchange now. Here are the factors to consider first.
Stablecoins are a subcategory of cryptocurrencies with a special feature of the value being tied to a fiat currency or another financial instrument. Crypto coins are famous for volatility, but stablecoins offer a different approach. As the name suggests, they are famous for stability because of their connection to other currencies.
The most common stablecoin types are those that are backed by fiat collateral. That means the issuer has a reserve of the fiat currency that the crypto coin is pegged to, and that guarantees a stable value. Crypto-backed and algorithmic coins are other stablecoin types.
The main reason to acquire stablecoins is if the crypto market is in a turbulent period. You can preserve your investment value by keeping stablecoins until it’s the right time to trade again.
Exploring LUNC: Use Case and Features
LUNC is an abbreviation for the Terra Classic coin. The token used to serve to power transactions on the Terra network. The coin lost this primary purpose after the platform’s hard fork led to a migration to Terra 2.0.
Today, you can use LUNC to participate in network governance. It’s also possible to stake tokens to earn rewards or trade them in supported exchanges. Experts note to beware of LUNC’s extreme volatility since it doesn’t power the network anymore. Other factors, such as social media engagement, affect the currency value strongly at this point.
Unraveling USDT: The Stablecoin Standard
USDT or Tether is a stablecoin currency owned by iFinex, a company that’s also the owner of the BitFinex exchange. Tether is tied to the US dollar, and it’s the most popular stablecoin in the market. It was first launched in 2014 and initially only supported the Bitcoin blockchain. Today, USDT is compatible with Liquid and Omni protocols, but also Solana, Algorand, EOS, TRON, and Ethereum blockchains.
Creators assure that USDT has 100% reserves. At this point, it does a good job of avoiding volatility. The token’s current value is $0.9996, and the market cap is at around $82.5 billion. You can read USDT vs TUSD comparison to learn how Tether compares to other crypto pegged to the same currency.
Exchanging LUNC to USDT
If you’d like to swap LUNC for USDT, it’s vital to find a reliable exchange. Godex is a platform dedicated to privacy, and it promises not to collect any personal information. Apart from not requiring registration, the exchange is incredibly fast and completes transactions in five to 30 minutes.
Here’s how to exchange LUNC for USDT on Godex:
- Visit Godex.io. The platform immediately offers the option to choose the currency to swap and the coin to get. After you pick it and enter the amount, click on Exchange. Godex doesn’t limit the transaction amount.
- Enter the wallet address. Type in the exact wallet address where you want to receive USDT.
- Deposit LUNC coins. In the next step, deposit your coins to the generated address. The page will refresh automatically after a single transaction confirmation.
- Complete the process. It will take up to 30 minutes, depending on the network, to finalize the transaction.
LUNC to USDT: Long-Term Value Preservation
The primary consideration why you should consider swapping any crypto for USDT is long-term value preservation. If you sense volatile times are ahead, Tether is famous for its stability and can help maintain your investments during a crisis.
But it’s not only about navigating the bear markets with stablecoins. LUNC is a coin that doesn’t run the Terra chain anymore, which makes the future riskier. It’s why getting rid of this currency until you are certain it’s worth getting it back might be a smart move.