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Binance’s burn of LUNC not enough to save Terra Classic

by Tim

A short-lived hope? The Terra community was hoping to see the Luna Classic (LUNC), the original token of Do Kwon’s dying project, take off. But the arrival of Binance was not enough to rekindle enthusiasm for the cryptocurrency.

Binance was not the saviour of LUNC

A week ago, the largest current exchange platform, Binance, announced that it would participate in the LUNC “burn”. That is, the exchange decided to send the transaction fees collected on its LUNC/BUSD and LUNC/USDT trading pairs to the official burn address.

The interest for LUNC holders was to make the token deflationary, and the consequent weight of Binance was particularly welcome. But the initiative was polluted by another piece of news: that Do Kwon, the founder of Terra, had been added to the Interpol red list.

The move had an immediate effect, with LUNC rising by almost 80% in a matter of hours. But the enthusiasm waned somewhat in the days that followed. LUNC peaked at $0.00037 two days ago, but this is a far cry from its all-time high of nearly $120.

LUNC price jolts

LUNC price jolts


In the end, it’s hard to see this initiative as anything other than a wild hope on the part of LUNC holders who want to capitalise on a possible resurgence of interest.

Binance has burned only 0.08% of the supply of UNDCs

In the end, Binance burned $1.8 million in UNLK. A sum not high enough to have a definitive impact on the cryptocurrency’s price. This is indeed only 0.08% of the supply. There are 6.8 trillion LUNCs in circulation, so the burn would have to be much larger for it to have a significant impact.

What we need to remember from this story is that attempts to revive projects are often doomed to failure. All the more so when the project in question has caused other major players in the ecosystem to collapse as a result.

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