Crypto

Why the New LUNA Coin LUNC could surge in a coin BURN

Why the New LUNA Coin LUNC could surge in a coin BURN
Malta, Floriana, Phoenicia hotel; 12:57, 23 April 2022 | Ⓒ Copyright TabStocks.com

This TabStocks article analyses why the new LUNA coin LUNC could surge in a coin burn

Coin Name and symbol

Luna Classic (LUNC-USD)

Recent LUNA-LUNC News

Luna witnessed one of the most catastrophic crashes in crypto history earlier in May 2022.

Interesting developments have since taken place with plans for its revival underway.

Luna has wiped out almost $60B of market value, falling from an all-time high of $80 to a record low of $0.00001675.

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Luna is bouncing back up from these low prices pumping by at least double digits in the past weeks.

It has skyrocketed by 915% since its massive collapse.

This has been accredited to some major factors such as forking, buying action, and burning of tokens. The latter has been agreed as the most effective move to do so.

Over 300 million tokens have been burned so far, which is widely supported by the crypto community including the Binance CEO, who was not a fan of forking.

Luna will be forked into two, Luna 2.0 and Luna classic.

The burning of Luna classic will ensure that the supply is reduced and keep the price high.

Holders of LUNC have received an allocation of one billion of the new Luna 2.0 on the new Luna chain.

Luna tokens were airdropped on 27th of May as it was heavily anticipated. The old coin is now Luna Classic and would not be pegged to a stable coin.

The burning phenomenon has emerged as the best way to bring sound value back to LUNC. This will however have to take place in epic proportions to make a meaningful impact.

This is because the supply of the tokens inflated drastically from 350 million last month to currently over 6.5 trillion.

The burning of the tokens needs to dramatically go up to the trillions and still take into consideration other factors such as demand.

Exciting price action was also seen after the launch of Luna 2.0.

Volatility was no surprise after the launch as a lot of buying/selling action was ongoing.

After its launch Luna was stable at $16-$19, peaking at $19.54 before crashing by 75% down to $3.63. It is now at $5.96.

LUNC traded higher ahead of the 27th May 2022 due to buying activity. It shot up but later crashed.

Luna 2.0 was welcomed by several exchanges including Huobi, Bitrue, FTX and eToro.

Traders and investors and opportunists see a chance to profit from the swings while others remain pessimistic about Luna.

The legitimacy of Luna is still under question with some losing complete trust in the coin.

The growing community of Lunatics is ardently looking to resurrect it from the dead.

Current position of Luna:

What does LUNC burn mean?

One of the recovery plans offered to salvage LUNA was a burn option, where a massive supply of the tokens would be destroyed.

The supply of Luna had surged exponentially to a stunning 6.5 trillion leading to the death spiral.

Inflated tokens led to the collapse in price, demand could not keep up with the excessive supply.

Burning LUNC will increase the scarcity of the coin thus pushing up the price.

This was heavily supported during the voting process, with forecasts that it could play out like

Shibu Inu burns which turned out to be very successful. However the owner has since disappeared.

The biggest challenge that now faces Terraform labs is the funding for the huge burns that many are calling for.

CEO Do Kwon has stated that they do not have the money to burn the Luna circulating supply.

The process is therefore expected to take place gradually over a substantial period.

The burn movement has garnered significant momentum, believing this could push LUNC to the moon.

Luna 2.0 is taking over with a supply of 210 million, way less than the supply of LUNC.

The market capitalization of LUNC is a little over $1B at the moment. Luna 2.0 also has roughly the same market cap despite the huge difference in supply.

The problem arises with the need for sound economics in the trading of tokens.

With the current supply of LUNC, a modest hike to $1 could mean that its market cap will be valued at $6.5T, which is 6x bigger than the entire crypto market combined.

Fortunes stand to be made and lost as Luna continues to affect different strategies to ensure its survival.

The burn would make Luna more attractive and is somewhat similar to a buyback of shares by a company that pushes the stock higher.

The tokens have been heavily diluted and so far, the burn rate is only in the millions with a reported 426.86 million burned as of May 27th.

This is but a drop in the crypto ocean compared to the trillions of tokens in circulating supply.

Do Kwon has come out against the burn stating that it is only giving coins away and burning coins will not do any good.

His sentiment clearly shows he wants people focused on their new Luna 2.0 which will be their money maker.

The Terra Luna blockchain was doing well and they have a lot of developers on the platform.

Terra 2.0 is their new blockchain where they hope to capitalize on new developments.

The Lunatics seem to be focused on the burning of LUNC and have started a massive movement to facilitate this.

Mexi global exchange has strongly embraced the burn, announcing that for the next month, fees associated with the trading pairs of LUNC will 100% go into burning LUNC.

This is an excellent way and if many exchanges do the same, they could see their trading volume increase.

LUNC Trading Price

LUNC is sitting at 0.000124 as of 31st of May 2022. It has been very volatile in the week given a lot of activity going including the forking and burning plans.

LUNC is down by 1.324% in the last 24 hours. LUNC is trending due to a pricing error in its oracle that has led to Mirror Protocol as reported by Cointelegraph.

This gave a window for an exploiter to drain four synthetic asset pools from the mirror protocol. This has the potential to affect other asset pools where other coins are exchanged.

Binance announced launching new perpetual contracts for the token which saw the price of LUNC surge to as high as 90%.

This shows there is still a lot of support and following in LUNC despite the collapse.

Sentiment on LUNC

Everybody seems to support the notion of a LUNC coin burn. Trillions of dollars in market cap are not feasible at the moment.

Even if the overall crypto market takes a wild run upwards, this level is inflated.

The Lunatics are devoted to making sure the coin prospers. When Do Kwon shared a burn address via Twitter, the reception was shocking with over millions burnt in just one day.

Exchanges that have embraced a LUNC coin burn and this will accelerate the burn rate.

The current burn rate of LUNC is amazing at the moment and is faster than Shibu Inu in its early stages.

They still have a long way to go as millions of burned coins are nothing compared to the trillions in circulation.

In the grand scheme of things, this could play out well if this burn rate is sustained.

There are a lot of creative people who could drive this next level.

There are merged sales, companies, and different mechanisms that are evolving to burn LUNC.

More people are jumping on board to burn LUNC and this will ultimately result in a reduced supply. Short-term traders are focusing to benefit from price action from the burns as it.

This school of thought is misguided at the moment.

Unless trillions are being burned in one go, the impact on price will be little.

Burns is a theoretical way to reduce supply to increase potential prices and maintain the same market cap.

It is a delicate balance that has to be maintained.

It will not take place overnight, but it needs to grow and be sustainable. Scalable sustainable burns are the best way to go as no one wants to burn all the money at once.

Burns will most definitely lead to a higher price for LUNC in the long haul. The Luna community is focused on burning, supported by 99% of Lunatics.

Burning will bring back the trust that was lost in the wake of LUNA’s collapse. Crypto is a volatile space and the outcomes will sure be extreme.

Future of LUNC

LUNC is showing the potential of being a future winner following the consensus to burn the tokens.

If this can be achieved and trillions of coins are burned, it could regain its former glory.

Sound tokenomics need to be considered in the actions taken to revive the coin.

There also exists some internal rivalry between LUNC and LUNA 2.0. Which will emerge as a better token?

We have to wait and see what will happen.

The utility of the token is also an important factor to consider in assessing the future.

Their blockchain development system is very promising and needs to grow significantly with application in industry or the real world.

Burning is arguably the most effective way that LUNC will see LUNC spring back up.

There could be only one destination for the LUNA journey, one in which could see LUNC landing on the moon. But this remains to be seen.

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