Terra Classic (LUNC), the remaining token from the failed Terra blockchain that suffered a near $60 billion Terra crash earlier this year. Terra Classic’s native crypto token LUNA saw a near 60% surge in an intraday price action on 26 September, 2022.
This major breakout came after the newsbreak regarding Binance, one of the largest crypto exchanges in the world, unveiling a plan to introduce a burn scheme for the LUNC token. Binance announced that trading fees from LUNC spot & margin trading would be burnt. Post the Terra crash from May 2022, the renamed LUNC crypto token has turned into an inflationary crypto token and Binance’s attempt at a burning protocol is simply to control that.
» Binance To Implement Terra Classic (LUNC) Burn Mechanism
Quick thread on what we’re doing and why below.https://t.co/b86RlCGPmv
— CZ 🔶 Binance (@cz_binance) September 26, 2022
LUNC rallies 60%
Thanks to this news, LUNC price jumped as much as 60% on the news, reaching as high as $0.000328, according to TradingView. LUNA crypto token was exchanging hands at around $0.00030 at press time. This rally has brought LUNA’s crypto market capitalization back to near $2 billion levels and is currently at about $1.8 billion, according to CoinMarketCap.
There was already a lot of fear, uncertainty and doubt amid the news regarding Interpol’s ‘red notice’ for Terra’s founder Do Kwon. And quite understandably, in that situation, a 60% jump during that kind of FUD would have caught a lot of traders by surprise. Logically speaking, a newsbreak regarding a crypto blockchain founder getting a ‘red notice’ is going to be bearish, which is why this rally took everyone by surprise.
Read more: LUNA vs LUNC
As a matter of fact, according to data from Coinglass.com, the rally had caused over $1.6 million worth of short positions on the LUNC tokens was liquidated in under 24 hours, which is the highest in the past three months.
The implosion of the Terra ecosystem back in May 2022 was undoubtedly one of the biggest and the most drastic crashes in crypto market history. Its $60 billion wipeout caused several well established crypto firms to become insolvent and even resulted in an overall crypto market crash too. Earlier in September, South Korean authorities issued an arrest warrant for Terra’s Do Kwon on charges of fraud.
It also must be noted that a community approved 1.2% ‘tax burn’ is also being implemented in LUNC to also aid in the effort to make the asset deflationary instead of inflationary. Speculations amid this move had also resulted in a near 500% rally in the LUNC token in a period of two weeks, as we have reported earlier this month.
Read more: LUNC rallies 500% in two weeks!
Thus overall, it seems that the community that is backing the LUNC token is trying hard to pick up the pieces and recover the immense losses that the overall market and particularly, this token too has seen thanks to the Terra implosion that happened back in May. This is a particularly good sign however, traders should also be extremely cautious and careful before investing in LUNC since it is a highly volatile crypto asset and has a poor history too. Hence, doing your own research is of the topmost priority and also, investing only what you can afford to lose is a sound principle one can abide by.
Prices as on 27 September, 2022.