Binance, one of the world’s largest crypto exchanges, carried out its 26th LUNC token burning. Burned 1.14 billion Terra Luna Classic tokens. This move triggered an uptrend in the market, with LUNC and USTC prices rising by more than 10%.
Binance LUNC Burn
Since the crash, Binance exchange has been burning LUNC on the 1st of every month. In the latest move, Binance burned 1.14 billion LUNC tokens. With the announcement, we saw LUNC and USTC prices rise by double digits, albeit temporarily.
LuncLive validator owner Diamondhandz emphasized the importance of Binance’s contribution and expressed his gratitude to Binance CEO Changpeng Zhao and his team.
Binance destroyed 1,142,098,248.09 LUNC for monthly burn! Thanks to CZ and company for supporting the LunaClassic community since 2022! LUNC to the moon!
His statement reflects the community’s optimism and continued support for revitalizing the Terra Classic ecosystem. So why did he thank CZ? If you remember, after the crash in 2022, the LUNA community wanted the supply to be reduced in order for LUNC to survive and compensate for its losses and called for CZ to burn tokens. Listening to the voice of the community at that time, CZ agreed to burn half of the transaction fees to reduce their suffering and narrow the supply.
Binance has played a key role in supporting the LUNC ecosystem, burning more than 64 billion tokens by September. The LUNC burn mechanism reduces the supply of tokens, which can cause the price to rise if demand increases. However, if you remember our calculations for 2022 and 2023, with this burning rate, it will take approximately 100 years for the LUNC Coin price to reach the desired levels.
LUNC and USTC Rise
Binance has increased the frequency of burns in recent months. In September, Binance exchange conducted LUNC burns six times, which represents a significant increase from the previous monthly one-time schedule. It was one of the classic double-digit increases following the burning announcement.
In summary, Binance’s Terra Luna Classic token burn led to significant increases in LUNC and USTC prices. This strategy supports the market demand by reducing the token supply and aims to increase the price. Binance’s continuation of this practice may not be a positive indicator for the future of the Terra Classic ecosystem because it is very difficult for the 6.7 trillion supply to melt even if it takes decades.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
