All coins received as trading fees will be burned

LUNC token surges 50% following Binance’s announcement of the burning of the altcoin

27.09.2022 - 13:40

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2 min

What’s new? The token of the original Terra Classic (LUNC) network has shown a 50% increase. This happened after the Binance crypto exchange announced that all LUNC coins received as trading fees will be burned. Previously, such a burn mechanism to burn assets was implemented only for deposit and withdrawal fees. Now all trading fees will be sent to a special address to burn the asset. Token trading fees received in other assets, including USDT and BUSD stablecoins as well as Binance’s native token, BNB, will be converted to LUNC at the current exchange rates every Monday at 00:00 UTC and burned. The asset is trading at $0,00027982 as of September 27, 13:15 UTC.

Binance’s announcement

Cryptocurrency burning is the process of removing a certain number of tokens from circulation, after which they become permanently inaccessible. Often burning is carried out in order to increase the rate of an asset or prevent it from inflation. Burning can be done by sending tokens to a wallet without a private key, by conducting a hard fork, using special software, or using algorithms that destroy some of the funds during transactions

LUNC situation. On September 10, the weekly increase in the value of the asset was 78,1%, and the coin reached the $0,00043149 mark. The participants of the crypto community linked the growth of the rate with the approved proposal to burn 1,2% of the transaction amount in the form of a so-called tax during each transfer of tokens on the blockchain. South Korean authorities later initiated an investigation to determine whether the asset fell within the definition of securities. Analysts at Santiment later said that LUNC has a chance to get the “meme king crown,” replacing DOGE and SHIB. They pointed to similar price and sentiment dynamics on social media.

According to an investigation by CoinDesk Korea and CryptoQuant, 3313 BTC ($65,8 million) was transferred to Kucoin and OKX exchanges from the Luna Foundation Guard’s wallet, created on the Binance exchange, between September 15 to 18. Herewith, on September 14, South Korean law enforcement officers issued an arrest warrant for Terraform Labs CEO Do Kwon. Kucoin froze assets at the request of the authorities, while OKX ignored the request.

Author:

Tatiana Darda Tatiana Darda

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