In a strategic move that sent ripples through the cryptocurrency market, the Luna Foundation Guard (LFG) has dramatically reduced the number of its tokens in active circulation. The USTC token, previously valued at $0.02363054, saw an impressive 8.43% increase, while the LUNC token experienced a 1.34% rise, reaching $0.00010433.
The market witnessed the withdrawal of a colossal 222 million LUNC tokens and a staggering 1.85 billion USTC tokens from the circulating supply, marking a significant shift in availability. It’s important to note that the term ‘circulating supply’ excludes any tokens held in escrow, as well as those owned by the team or foundation itself.
The weekend brought a surge of excitement as the Terra Luna Classic ecosystem’s tokens soared in value following the LFG’s announcement. In a matter of hours, the price of LUNC skyrocketed by over 10%, and $USTC value jumped by 18%. However, this uptick was short-lived as the gains soon diminished. The rationale behind this move was the inactivity of the associated account for more than two years.
As a result of this action, the circulating supply of USTC has been adjusted to 7.1 billion tokens According to CoinMarketCap’s criteria, assets that are not available for public trading, have been legally or contractually locked, or are held by insiders such as team members or private investors, do not count towards the circulating supply—even if they have been unlocked.
It’s crucial to clarify that these numbers reflect adjustments rather than actual removals from circulation. A misclassification had previously led to the inclusion of certain LFG funds within the circulating supply. This revelation sparked a buying frenzy among community members propelling the prices of $LUNC and USTC to new heights. Nonetheless, the initial excitement waned, and prices began to normalize as the community digested the news.
The overarching ambition of the Terra Luna Classic community is to diminish the total supply by incinerating USTC and LUNC tokens held in the LFG wallet. To date, this initiative has