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LUNC’s 1.2% tax burn may lead to a brighter future, what about the present

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The much-awaited 1.2% tax burn was implemented on the Terra Classic [LUNC] blockchain recently. Thus, giving massive hope to investors for the token’s revival. Though the protocol received much support from multiple crypto exchange platforms, including KuCoin, LUNC’s price did not correspond accordingly.

Moreover, just a day after the roll out, it was announced that LUNC’s 1.2% tax burn protocol was facing issues.

However, investors and enthusiasts still remained confident despite the setback. LUNC HODLers believed that LUNC would continue surging and reclaim its past glory in the months and years to come. However, let’s look at what’s happening in the ecosystem to better understand what to expect.

Facts vs Rumors

The information regarding some issues with the protocol when revealed, was followed by information that stated developers were working on fixing the problem. No matter the issue, the good news was that more than four billion LUNC tokens were burnt after the roll out, with a daily burn rate of over 243 million.

This was definitely a positive development, as burning such large amounts would limit LUNC’s supply in the future. Thus, driving the price of LUNC higher in the long run.

Interestingly, amid all these developments, some misinformation also surfaced on social media. For instance, people on Twitter did not have much clarity on the Binance episode.

A popular crypto influencer, Classy, via Twitter mentioned the actual scenario, which helped in clearing the cloud regarding Binance’s position. He mentioned that LUNC’s network burns are supported by Binance, and if added, the burn will significantly increase.

Here is what to expect

LUNC, which registered massive upticks in the last month, failed to meet the expectations of investors after the tax burn. At the time of writing, LUNC registered negative 3.40% 24-hour gains and was trading at $0.0002573 with a market capitalization of $1,585,327,915. 

Source: CoinMarketCap

Furthermore, data from Santiment also revealed a few reasons that might have played a role in this decline. For instance, LUNC’s trading volume decreased considerably over the last few days. Additionally, the blockchain’s network activity also followed a similar route of steep decline. 

Source: Santiment

As of 23 September, LUNC’s four-hour chart also painted a similar picture, as most of the market indicators suggested a bearish market.

For instance, the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF), both registered downticks. This suggested a sellers’ advantage in the market.

Moreover, the 20-day Exponential Moving Average (EMA) was below the 55-day EMA, which was also bearish. Therefore, what’s in store for the recently revived token is yet to be seen.

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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