- 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
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.
Follow us on Telegram
Stay updated of all the news
China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.
Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Dogecoin price action hints DOGE can reverse its bearish trend
Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.
PEPE price to drop another 15% as altcoin winter is only halfway finished
PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.