It is that time again. Luna Classic (LUNC) manages to increase by tens of percentages in a very short time. The token shot up gaining more than half its value within 4 hours. How is this possible?
So what happened?
LUNC is up a whopping 60% in the past 4 hours. This price action is in response to an important piece of news from Binance, the largest crypto exchange in the world. The exchange announced that they were going to implement a burn mechanism, which is some of the most bullish news for LUNC in recent times.
When LUNC would start burning tokens, this in addition to a 1.2% tax on transactions will cause the number of tokens to decrease. This is necessary to be able to save the project to some extent, after it completely collapsed earlier this year.
Eduard Kim, a computer science teacher at Drexel University, explained this further in a Medium article. Token burning has been implemented on the blockchain (on-chain). The only problem he feels is that burning these tokens must also be done off-chain (outside the blockchain). For example, this involves burning/taxing of central exchanges (CEXs) – such as Binance.
Bullish for LUNC
Now that the world’s largest exchange has given permission for this and allows this burning, there is a stampede on LUNC. The LUNC community made a request to Binance, and the exchange came up with the following response:
In response to the LUNC community proposal on burning trading fees while maintaining a good trading experience for users, Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address, Binance explained.
The exchange added that “the specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week until further notice.”
» Binance To Implement Terra Classic (LUNC) Burn Mechanism
Quick thread on what we’re doing and why below.https://t.co/b86RlCGPmv
— CZ 🔶 Binance (@cz_binance) September 26, 2022
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LUNC up 60% in 4 hours
The Binance announcement ignited a huge price reaction. The total value increased by 60% within 4 hours. Since this news has just been published, it remains to be seen whether this was the end of this spurt.
The token has been in the news a lot lately. Not long ago, the currency had appreciated by 430% in 30 days. Now that the recovery plan is known and Binance supports a large part of the plan, more people are already positive about the token.
Burning LUNC is only one of the first stages of a complete recovery plan. Hence, the token is likely to make a bigger push. This is not a guarantee, as the program will be officially completed in 2023.
The post This is Why Luna Classic (LUNC) Jumps 60% In 4 Hours (And Could Even Rise More) appeared first on iGaming.org.
Source: Igaming
