Terra Luna Classic (LUNC): Opportunity of a lifetime or scam?
A topic of discussion in the cryptocurrency community in recent days has been Terra Luna Classic and its token, LUNC, as it has already seen a rise of about 550% from its historic lows after its magnificent collapse annihilated its value.
This great rise in the price of LUNC is mainly due to two factors:
1. The activation of staking in the Terra Luna Classic ecosystem, which currently offers extremely high returns of 37.8%. More than 28 billion LUNC have already been staked, and 230,000 addresses have staked.
2. The proposal already approved by the community and expected to be implemented after September 20, which calls for “burning” 1.2% of LUNCs from each transaction. This proposal is called LUNC BURN TAX.
These two factors, and in particular the Burn Tax, aim to reduce the amount of LUNC in circulation, which is currently almost seven trillion coins. It is clear that the ecosystem cannot function with such a quantity, nor can it be trusted by investors and developers.
Generating Excitement
As expected, the prospect of the two factors mentioned above created excitement in the Terra Luna Classic community and created a momentum that led everyday investors to buy large quantities of LUNC. This hype caused the dramatic increase in the coin’s price, which we talked about in our introduction.
IF all goes smoothly
The fact is that the Terra Luna Classic community plan looks excellent on paper and capable of bringing the ecosystem back from its historic collapse. But we emphasize “on paper”.
Theoretically, if the “burn” works to perfection, then in record time the amount of LUNC will be drastically reduced and then we will witness the great return of Terra Luna Classic.
The question marks and the first disappointment
Now leaving “the paperwork” and moving to the real world, difficulties in the full implementation of the BURN TAX proposal are presented, as some large exchanges seem unwilling to implement it.
For example, Binance, which owns about 35% of the LUNC volume, at least for the time being seems reluctant to implement the BURN TAX as far as intra-exchange transactions, which are huge in volume, are concerned.
In such a case, the BURN TAX would only apply to cases of LUNC deposits and withdrawals, as in these cases the exchanges are obliged to apply it since they deal directly with the Terra Luna Classic chain. The same path seems to be currently followed by some of the other major exchanges.
In contrast, some other notable exchanges, such as MEXC and KuCoin, have announced that they will implement the BURN TAX as normal and this is undoubtedly a positive development.
The pressure from the Terra Luna Classic community on the major exchanges, especially Binance, is immense and it remains to be seen what their reaction will be.
If they decide to implement the BURN TAX as normal then the facts change. If not, then things for a reintroduction of Terra Luna Classic become very difficult.
Administered by community
One thing we should make clear is that Terra Luna Classic no longer has anything to do with its destructive founder, Do Kwon. As a reminder, after the total collapse of the ecosystem, Do Kwon left the original chain and created new ones, using the name Terra for the Blockchain and LUNA for the currency.
Terra Luna Classic is now run by its community, using a voting model, just as was done in the case of BURN TAX. To say that 99% of the community votes were in favor of implementing BURN TAX.
However, we should mention that “on paper”, the Tera Luna Classic community will first seek to reinstate LUNC by drastically reducing its quantity in the two ways mentioned above, and subsequently attempt to reinstate the link between the ecosystem’s stablecoin (USTC) and the US dollar.
Scam or opportunity of a lifetime?
This is the big question that plagues, we suspect, hundreds of thousands of everyday investors. Scam or opportunity of a lifetime?
We will venture to record our personal opinion. There is real action in the Terra Luna Classic ecosystem. The two factors we describe above are real. The first has already started working (staking) and the other has already been voted on by the community and will attempt to be implemented.
The key to whether or not it will be a life time opportunity is the success of the Burn Tax. If it is successfully implemented, then there is hope. However, even if it is successfully implemented, success will not be taken for granted, as various other factors (e.g. supply and demand) will play a role.
If it is not implemented with the participation of the major exchanges or if other problems arise, then it will be another failed attempt to reintroduce the Terra Luna Classic.
This is our view. From there it is up to each individual to decide which of the two is true: scam or life opportunity?
What we recommend is our firm position: Study, read, read up, do your own research before making your own final decisions. And always invest an amount we can afford to lose.
Originally published at https://bitnewsbot.com on September 13, 2022.
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