Here’s what to expect from LUNC after Luna Classic community failed to meet burn target


Share:
  • Luna Classic successfully completed its upgrade to v1.0.5 on February 15, however the community failed to meet the burn targets. 
  • In the absence of Binance’s monthly LUNC burn, nearly 10 million tokens were burnt by the community members, LUNC DAO and the Cremation Coin project. 
  • LUNC yielded 8% losses for holders over the past week, after the blockchain upgrade and failure to reduce the token’s circulating supply. 

Luna Classic went through a successful blockchain upgrade on February 15. While developers were busy with a smooth transition to the updated version of the project, the community failed to meet the LUNC burn target. 

Burn is key to Luna Classic’s community since the reduction in the token’s circulating supply fuels a bullish sentiment among LUNC holders. 

Also read: What do institutional giants know about GMX: Do Amber Group and Arca expect a 20% rally?

Luna Classic successfully transitions to v1.0.5

Luna Classic (LUNC), formerly LUNA successfully upgraded to v1.0.5 at block height 11,543,150 on February 15. Developers were busy with the blockchain upgrade, and the LUNC community failed to meet burn targets. 

LUNC’s burn mechanism helps reduce the circulating supply of the token and fuels a bullish narrative among holders. Initially, Binance burned trade fees collected for LUNC pairs on the spot exchange. However, this week Binance did not execute its monthly LUNC burn, and in the absence of the exchange’s token burn, the community burned nearly 10 million Luna Classic tokens. 

The Terra Classic community therefore missed the burn target, in the absence of significant burn in the LUNA ecosystem. This fueled a bearish sentiment in crypto market participants, with LUNC price nosediving to $0.000167. 

LUNC price chart

LUNC price chart

Despite market-wide crypto recovery, Terra Classic is under selling pressure and it is likely that LUNC’s short-term uptrend may reverse soon. LUNC has yielded nearly 8% losses for holders since February 7. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.

More Cardano News

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.

More Bitcoin News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari. 

More Solana News

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders. 

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP