How The $60M AVAX Buyback Could Impact Terra Luna Classic Price
Terra Luna Classic price has been trending upward since July, making higher highs except for the unexpected market-wide August 5 crash. However, following the development of the Terraform Labs (TFL) case and the subsequent liquidation of the company, Avalanche is seeking to buy back all the $60 million AVAX tokens that the Luna Foundation Guard (LFG) purchased as part of its portfolio to strengthen the UST algo-stablecoin.
While the AVAX price performed well after the announcement, jumping 17.5%, the LUNC community speculates how the inbound $60 million could impact the tokenâs price. Will it be used in a LUNC buy-back and burn?
Terra Luna Classic Price If $60M AVAX Is Used to Burn LUNC
The AVAX token buyback plan by the Avalanche Foundation provides the LFG with $60 million in funds to use as bankruptcy court orders. Meanwhile, the Terra Luna Classic community has taken full control of the blockchainâs leadership as TFL and LFG approach their final days.
If the community uses this $60 million to buy back and burn LUNC, the price of Terra Luna Classic will likely see a significant impact. The LUNC price is currently trading at $0.00008931, down 0.7% in the last 24 hours. A $60 million purchase of LUNC would equate to 671 billion coins, or about 12% of the total circulating supply, with a current market cap of $510 million. To maintain this market cap with 12% of the supply gone, the price would need to adjust 17% upward, reaching $0.0001.
The hype from the coin burn, combined with the potential 17% increase, could fuel Fear of Missing Out (FOMO), leading to a cascading effect that drives LUNC prices higher than $0.0001.
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