Large wallets selling LUNC tokens and movements of these tokens on centralized crypto exchanges resulted in the burning of over 6.5 billion LUNC tokens. This recent burn adds to a cumulative total of over 123 billion LUNC tokens burned by the community.
As a consequence of these events, both LUNC and USTC prices experienced significant declines, with LUNC dropping by 19% and USTC by 7%.
Impact of Large Wallets on LUNC Burn and Community Actions
Large wallets selling LUNC tokens on centralized crypto exchanges have led to a significant increase in LUNC burn, exceeding 6.5 billion tokens in the last 24 hours. This has notably reduced both the total and circulating supply of LUNC tokens while increasing the amount held in the community pool.
During this period, trading volumes for LUNC surged by more than 600%, indicating heightened activity among traders and investors. The selloff occurred shortly after Terraform Labs CEO Chris Amani confirmed plans to burn LUNC and USTC tokens held in TFL and LFG wallets to the Terra Classic community. Amani also expressed willingness to blacklist and burn wallets containing these tokens if TFL no longer has access to them.
Following this latest burn, the community-driven total burn of LUNC tokens has now surpassed 123 billion. Binance has emerged as a significant participant in these burns, having burned 60 billion LUNC tokens through its monthly burn mechanism.
Speculation surrounds the identities of these wallets, with some suggesting connections to Terraform Labs and its founder Do Kwon. Recent US court filings revealed early investments in Terraform Labs by Milojko Spajic, the Prime Minister of Montenegro.
Terra Luna Classic Tokens Experience Significant Decline Amid Sell-Off
The Terra Luna Classic ecosystem tokens, particularly LUNC, faced a substantial downturn as whales and other investors sold off their holdings. Despite the recent selloff, members of the Terra Luna Classic community remain optimistic about a potential future increase in LUNC prices, especially with the upcoming implementation of Tax2Gas.
Within the past 24 hours, LUNC witnessed a sharp decline of over 19%, with its current price trading at $0.00007486. During this period, the token’s price fluctuated between a low of $0.00007206 and a high of $0.00009188. Additionally, trading volume surged by 630%, indicating heightened trading activity and interest among traders.
Simultaneously, futures open interest for LUNC on platforms like Binance and other crypto exchanges spiked by more than 50% within the last 24 hours, with a notable increase observed in the final hours of trading.
Meanwhile, USTC also experienced a decline of over 7% despite expectations for a significant burn event. The current price of USTC stands at $0.01723, with trading volume showing a 20% increase during this period.
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