LUNC burn: Binance announced its first weekly Terra Luna Classic LUNC burn in spot and margin trading pair fees, totaling $1.70 million.
This batch of fees came from trades between Sep. 21, 2022, and Oct. 1, 2022, according to a recent announcement by the exchange. Binance converted fees denominated in cryptocurrencies other than LUNC to LUNC before the burn. The trading platform calculates the fees to be burned each Monday at 00:00:00 UTC.
LUNC News Take the Spotlight
Fees are burned by sending LUNC coins to a Luna Classic burn wallet, making the funds inaccessible to users and reducing the coin’s circulating supply. The transaction ID for the burn is: F6B1CB656843438013D3C9A5948A1353AA3C65F6AE30D627AF791EEE0311AA36.
The Terra LUNA Classic community also created a LUNC burn website for crypto enthusiasts to be aware of the current LUNC burning rate and any LUNA Classic burn update. But be aware that under the current LUNA burn schedule, it will take around 27 years to complete the goal of burning 10 billion tokens.
The Binance LUNA burn announcement introduced revealed the LUNC burn mechanism to improve the trading experience after a proposal from the Terra LUNA Classic community. According to Binance, all LUNC coin burns will not affect LUNC spot and margin trading fees. The exchange caps trading fee rates at 0.1%.
Following the collapse of the TerraUSD stablecoin and its sister coin, LUNA, in May 2022, Terraform Labs co-founder Do Kwon announced a recovery plan to fork the original Terra blockchain to create “Terra 2.0.” This fork would see the original LUNA coin remain on the original blockchain as Luna Classic (LUNC). Soon after the LUNA Clunc burnlassic latest news, Binance listed LUNC on May 31, 2022.
Before its collapse, LUNC had reached an all-time high of $119.18.
LUNC Binance Traders Respond Negatively to the Number of LUNC Burned
In the last 24 hours, LUNC price surged 59.4% to $0.00031654 as LUNC Binance traders awaited burn numbers in a classic scenario of “buy the rumor, sell the news.”
Following the release of the Binance LUNC burning date and numbers, trader responses were mixed. One trader, Tree_of_Alpha, pointed out that the amount of LUNC burn was just 0.09% of the coin’s market capitalization:
Another trader, kcryptojunkie, advised traders to sell the coin following Binance LUNC burn update, tweeting, “Dump dump.”
In response to a tweet by the LUNC community, MikeHerzig5, lauded Binance and its CEO Changpeng “CZ” Zhao for taking the initiative and called on other exchanges to follow suit and burn LUNC:
Binance Terra Classic burn mechanism will destroy all transaction fees for LUNC spot and margin trades between Oct. 2, 2022, and Oct. 8, 2022, on Monday, Oct. 10, 2022.
Do Kwon Remains On the Run After Interpol Red Notice
While those shorting LUNC price hope the coin will go to zero, co-founder Do Kwon is a wanted man.
At press time, Kwon is on Interpol’s red notice list after falling afoul of South Korean capital market laws. Do Kown faces class-action lawsuits in both the U.S. and South Korea. The U.S. Securities and Exchange Commission is investigating whether Terraform Labs and Kwon duped investors by calling TerraUSD a stablecoin.
“Prosecutors are keen to punish him as an example, but it is a different matter if he will actually be found guilty in court,” said Kim Hyung-Joong from Korea University’s crypto research department.
Terra LUNA Classic Price Turns Bearish After LUNC Burn
The Tom DeMark (TD) Sequential indicator currently presents a sell signal on LUNC’s four-hour chart despite the LUNC burn Binance completed. The bearish formation developed as a green nine candlestick, anticipating a one to four candlesticks correction.
A spike in selling pressure that pushes LUNC price below its 50-hour moving average at $0.00031 can validate the pessimistic outlook. If this were to happen, LUNC price would likely retrace toward its 100-hour moving average at $0.00025.
LUNC price must print a 4-hour candlestick close above the recent high at $0.00037 to invalidate the bearish thesis. The upswing could give LUNC price the strength to advance to $0.00046, but it remains to be seen any new LUNA Classic news about the arrest of Kwon.
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