Identifying the odds of this Binance ‘update’ having any impact on LUNC
Terra’s fiasco continues to haunt the market as the strong selling pressure kept pushing the price of Terra Classic (LUNC) down. In fact, the Terra LUNA crypto-crash saw the coin drop by 99.9% in price. Even so, despite the aforementioned episode, the ‘old community’ has taken a different path(s) to keep the traction afloat.
The latest step looks into ways to help the struggling token…
Bringing back from the dead
Many cryptocurrency projects adopt crypto-burning as a means of restricting the circulating supply of their tokens. Thereby, aiding the price to potentially grow given the demand surges. Over the past few years, the mechanism has been used for a wide variety of reasons. But, could it work here?
Binance CEO Changpeng Zhao (CZ) created a stir in the Terra community after he announced his steps to aid the ‘fading’ token. Herein, CZ recommended a flat 1.2% trading tax on LUNC trades that could be burned to reduce the token’s total supply and improve its price performance.
In a September 24 blog, he stated,
“We will implement an opt-in button (on the Binance exchange), for people to opt-in to pay a 1.2% tax for their LUNC trading.”
When the opt-in accounts reached a holding of 25% of the total LUNC held on Binance, “we start to charge 1.2% tax for all opt-in traders when they trade LUNC,” the blog added. When it hits 50%, a 1.2% trading tax for all LUNC trading would be rolled out.
Ergo, burning supply could possibly help the altcoin, given the demand aligns itself. But, would the burn work?
Vouching for you
After months of waiting, Terra Classic [LUNC] developers finally rolled out the 1.2% tax burn protocol. The roll-out did manage to attract the interest of the crypto-community. Well, it burnt over 3.5 billion LUNC tokens and staked over 550 billion LUNC tokens.
This grabbed the attention of investors, as the daily trading volume went over $3.5 billion and LUNC’s price has rallied significantly in recent weeks.
The proposal has received some interesting traction across the community. According to on-chain analytics firm Santiment, LUNC faced high interest from the crypto-community as it saw a notable rise in related discussions.
Not just this, but it got support from exchanges such as KuCoin and many more. However, for now, the price didn’t really show a promising scenario as it continued to slide further south. Hence, the best decision will be to maintain caution whatever you do.