- LUNC went on another uphill run last month as Binance announced a new burning scheme for the coin.
- As Interpol’s red notice looms over the network, the surge of LUNC is a shock to even members of its community.
- Luna Classic’s chances of a sustained bull run hang on a thread as projects prefer the Terra 2.0 blockchain.
The hunt for Do Kwon intensifies, but his creation forges ahead despite its ecosystem’s grim circumstances.
Luna Classic (LUNC) is making a comeback soaring 60% amid the general market downturn. The price of LUNC surged after the largest cryptocurrency exchange Binance announced that it would begin a supply cut on the coin. At the moment, LUNC trades at $0.00032 from $0.00029 before the announcement by Binance and has made its way into the top 35 cryptocurrencies by market capitalization.
Earlier this month, LUNC had a price rally following the announcement of a burn scheme to remove 1.2% of LUNC per transaction from circulation. This initial burn plan which was lauded as a way to revive the blockchain, did not apply to transactions on exchanges.
Binance has joined the burn scheme, which will apply to trading fees on LUNC spot and margin pairs on the exchange. Traders on Binance can now voluntarily opt to join the burn scheme by removing 1.2% of the coin per transaction. Burning in digital assets is a deflationary technique used to remove tokens from circulation and often increases the asset’s value.
While developers and the community are doing all they can for the resurgence of the blockchain, its founder Do Kwon is on the wrong end of the news following a red notice issued for his arrest by Interpol. Do Kwon is now wanted in over 145 countries but insists that he is not on the run.
Still not out of the woods yet
With positives coming out of the network this month, it may show signs of a gradual turnaround for the blockchain. However, commentators view the new burn scheme by Binance as having little impact as it may seem. According to them, trading fees on Binance range from 0.1%- 0.02%, which means that the proposed 1.2% burn will have little effect.
Another area in which the blockchain falls short is attracting new projects following the crash of the blockchain in May. Existing projects on the blockchain were re-launched on Polygon and Avalanche as developers are running out of faith in the network.