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- Luna Classic experienced a gain after the ecosystem’s collapse in May.
- New supply burn rule will charge 1.2% “tax” on the transactions.
- LUNC was trading at $0.000423, down by 20% in the past 24 hours.
Good Times For Luna Classic
The retitled indigenous token of Terra blockchain, Luna Classic (LUNC), witnessed a considerable gain during May 2022. It appears like the good times for the asset are finally here following its rising price during the last few days. Traders think that the asset may see a quick revival. The asset doubled its price this week according to the data offered by Messari.
A “tax burn” initiative which aims to lower the asset’s hyperinflated supply may put another boost in the LUNC price. The community gave approval to the proposal which will implement a 1.2% tax rate on all the transactions on the blockchain. The proposal says that “tax” will automatically be transferred to a wallet to burn the assets to reduce LUNC supply.
The fee rate is anticipated to take effect within a couple of weeks as per a statement from the largest cryptocurrency exchange on the globe. The rate is not enforceable on trading on centralized exchanges. A Terra governance token highlighted that a few exchanges like MEXC will voluntarily adopt the fee.
Another cryptocurrency exchange declared that it will include LUNC trading against USDT to its trading pairs. However, the price revival may prove to be momentary as the latest fee parameter is less likely to attract new investors to the ecosystem. Oanda senior market analyst, Edward Moya, stated to a news website that “These are harsh times for cryptocurrencies in general and investors are still under the bad impression of Terra ecosystem collapse.
Prosper Trading Academy’s crypto educator, Howard Greenberg, said that all this is a speculation play which makes Luna Classic to a meme-coin currently.” he added that “there’s going to be a volatility in trade, and if the users enter the market, they should keep an exit plan handy.”
LUNA’s collapse back in May started the turbulence in the cryptosphere followed by the liquidity events, which made the scenario worse. As of this writing, LUNC, was trading at the market price of $0.000423, slipping down the cliff by 18% during the past 24 hours.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
