Nikolas Sargeant
Binance’s Luna Classic (LUNC) sees a price drop after disappointing Binance burn mechanism data. The burn destroyed only 0.08% of LUNC’s swollen supply but is seemingly too insignificant to have had a lasting impact on the hyperinflated token. The price of LUNC is down around 3% in the last 24 hours, hovering around $0.00031738 at the time of press.
An Ineffective Burn Mechanism
There was a great deal of optimism in the LUNC community, with “Lunatics” hoping the burn would see the token’s price rocket up to where it was in April, before the LUNA catastrophe back in May of this year. The stablecoin fiasco saw LUNA lose $60 billion in market value almost overnight.
Binance’s lackluster burn mechanism is a remnant of LunaTerra’s failed blockchain project Terra, led by the controversial Do Kwon. The goal to burn and boost the price of coins seems to be a hollow hope, with the result particularly underwhelming.
The mechanism was implemented a week ago, with Binance reducing the circulating supply by $1.8 worth of LUNC. The crypto firm’s CEO Changpeng “CZ” Zhao tweeted about the burn to say that the amount only represents 0.08% of the total token supply.
Hope For Luna Classic Project
LUNC has experienced various price hikes spread across the last month. The latest was the token’s price doubling last week after Binance released plans to carry out it’s own supply-reduction scheme. At the time, LUNC became the third most traded asset on Binance, with trading volume only topped by the industry standard silver and gold, Ethereum (ETH), and Bitcoin (BTC).
Binance's burn was calculated based on the token’s trading volume between September 21st and October 1st. This resulted in the exchange burning some 5.6 billion tokens. However, with 6.8 trillion tokens in circulation, this was a fairly insignificant number, although it sounds like much more.
Lunatics Never Learn
After Do Kwon’s LUNA stablecoin disaster, one would have thought that many LunaTerra believers would move away from the company. But, with more promise of hope and a return to the top, investors went back in on the LUNC project.
But, all the while, Kwon has outstanding court cases against him from the LUNA collapse, which saw customers lose billions. More recently, the company’s CEO had a red notice against him from Interpol, with the billionaire crypto boss responding to say nobody needs to know his whereabouts. South Korean prosecutors said that Kwon was “obviously on the run.”
