The Luna token, as the core token of the Terra blockchain ecosystem, has experienced dramatic changes in the cryptocurrency market since its inception.

Luna was launched and began trading in May 2019 by Korean founder Kwon Do-hyung. As the governance token of the Terra protocol, its main function is to allow holders to participate in network verification—users stake Luna to validation nodes, which are responsible for confirming and recording transactions on the blockchain, and stakers can earn corresponding transaction fee rewards.

The technical architecture of Terra adopts a dual-token model, including Luna and UST. UST is designed as an algorithmic stablecoin pegged to the US dollar at a 1:1 ratio. The system maintains price stability through a special mechanism: when the market demand for UST rises, the system destroys Luna to mint new UST; conversely, when the demand for UST decreases, users can destroy UST to exchange for Luna, thereby adjusting the market supply of UST.

The Luna token performed modestly in the early stages of its launch, with prices lingering below $0.5 for an extended period. However, 2021 brought a turning point, with an astonishing annual increase of over 800%. By April 2022, the price of Luna climbed to a historic peak of $119.18, briefly placing its circulating market capitalization among the top five cryptocurrencies globally.

However, fate took a turn; on May 8, 2022, Luna began to decline. As UST lost its peg to the US dollar, the price of Luna collapsed rapidly, almost reaching zero by May 12. In the face of this crisis, the Terra ecosystem announced on May 25 the reconstruction of the blockchain and the issuance of a new version of the Luna token, while the original Luna was renamed "LUNC."

As of November 2024, according to multiple media reports, Terraform Labs and its CEO Do Kwon have reached a settlement agreement with the U.S. Securities and Exchange Commission. After the news was announced, Luna briefly surged nearly 40%, breaking the $0.8 mark, and then experienced a pullback. As of the latest data on December 5, 2024, Luna has risen by more than 19.01% in the past 24 hours, trading at $1.02, with a daily trading volume of $233 million and a total market capitalization of approximately $594 million, ranking 60th in the global cryptocurrency market capitalization leaderboard.

It is worth emphasizing that the cryptocurrency market is highly volatile, and investment risks are significant. The historical trajectory of Luna is a typical example of this high-risk characteristic, reminding investors to maintain a cautious attitude and comprehensively assess potential risks when making decisions.