LUNC Makes 1900% Comeback Led by Community, Enters Top 30
LUNC experienced a massive 1,900% price increase from its lowest point of $0.00004885 on June 8 to its current price of $0.00052851 at the time of writing.
The community’s initiatives to revive Terra Classic (LUNC) are beginning to bear fruit as it rises to the position of the 26th largest project by market capitalization. With a market cap of $3.3 billion, LUNC is currently worth approximately 12 times as much as Do Kwon-led Terra (Luna), which is valued at $258 million.
This year, the trip of Terra tokens has primarily been bitter. Cryptocurrencies had also been susceptible by mid-May due to macroeconomic uncertainty that fueled a severe pessimistic tone in global markets. The worst affected were Luna tokens, which hit zero levels, and Terra tokens USD, which lost their $1 peg. As a result, a corpus worth allegedly $40 billion was destroyed. The Terra meltdown left many investors, exchanges, and businesses in a terrible financial state. After the Terra crash, the cryptocurrency market is still in the recovery phase.
Post the Terra ecosystem failure, the community proposed a number of ways to revive it. One of these was the approval of Proposal 1623, which led to the start of a new chain and the airdrop of fresh tokens to users of the Terra ecosystem.
Terra Classic, the original Terra chain, has been rebranded as Terra Classic under Terra 2.0, which was introduced in May of this year by Terraform Labs co-founder Do Kwon. Luna, a new chain with the same name as Terra, has also been formed and made tradeable.
Why Luna Classic (LUNC) Price Increasing?
The Terra Community has approved Terra Proposal 3568 and Terra Proposal 4159, which would implement a 1.2% tax burn for transactions involving LUNC and USTC that take place on the Terra Classic network. The tax is intended to aid in reducing LUNC’s oversupply. One of the main drawbacks is that it will raise the cost of Terra Classic on-chain transactions, a cost that the community is prepared to pay in exchange for a deflationary outcome. It is yet unknown whether future projects trying to implement their protocols on Terra Classic would encounter difficulties.
Crypto Exchanges Supporting 1.2% Tax Burn Proposal.
This tax burn idea generated enthusiasm in the community and was nodded by Kucoin, Gate.io, Huobi, BTCEx and MEXC while writing this news article.
However Binance announced that they will review and amend the withdrawal amount and fees via Terra Classic network.
— Binance (@binance) September 8, 2022
The tax burn is expected to go live on 20th September 2022.
It was projected that LUNC would vanish after the contentious crash, yet despite being branded as a scam coin, the community has been quite active and supportive of the cryptocurrency. Numerous initiatives have been launched with the goal of figuring out how to limit the number of tokens and staking options. Short squeeze operations carried out by the community in conjunction with an effort to restore the reputation that was lost may also be credited for the most recent surge in Terra’s price. In the same breath, some analysts believe that LUNC may emulate meme currencies like Dogecoin (DOGE) and Shiba Inu (SHIB).
The coming days will be rather volatile for LUNC traders. Blockmanity advises trading cautiously.
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