Terra classic: Burning the 1.2% tax make LUNC a brighter future or not?
The long-awaited 1.2% tax burn was recently implemented on the Terra Classic (LUNC) blockchain. Therefore, it gives great hope to investors about the revival of the token. Although the protocol receives a lot of support from many cryptocurrency exchange platforms, including KuCoin, the price of LUNC is not matched accordingly.
Also, just a day after launch, it was announced that LUNC's 1.2% tax burning protocol is experiencing problems.
However, investors and enthusiasts remain confident despite setbacks. LUNC HODLers believes that LUNC will continue to rise and regain past glories in the months and years to come. However, let's take a look at what's happening in the ecosystem to better understand what's going to happen.
LUNC Facts and Rumors
Information about some issues with the protocol when it was revealed, followed by information that the developers were working to fix the problem. Regardless of the issue, the good news is that over four billion LUNC tokens were burned post-launch, with a daily burn rate of over 243 million.
This is certainly a positive development, as such bulk burning will limit future LUNC supplies. Therefore, will increase the price of LUNC in the long run.
Interestingly, amid all these developments, some misinformation is also popping up on social media. For example, people on Twitter are not very clear about the Binance episode.
A popular crypto influencer, Classy, via Twitter came up with a realistic scenario that clears the cloud associated with Binance's location. She mentioned that Binance supports LUNC network writes and if they are added, the write level will increase significantly.
What can you expect from LUNC?
LUNC, which has posted massive rallies over the past month, failed to live up to investor expectations after the tax burn. At the time of writing, LUNC posted a negative 3.40% gain in 24 hours and is trading at $0.00002573 with a market cap of $1,585,327,915.
In addition, the Santiment data also reveal a number of possible causes for this drop. For example, the trading volume of LUNC has dropped significantly in the past few days. Additionally, blockchain network activity follows a similarly steep decline.
As of September 23, LUNC's 4-hour chart also paints a similar picture as most market indicators show a bear market.
For example, the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) both saw declines. This suggests an advantage for the market seller.
In addition, the 20-day EMA is below the 55-day EMA, which is also in a downtrend. So what's in store for the newly revived token remains to be seen.
Read also: Terra Classic burning 1.2% tax can be a driver of price increases or a problem
Sep 25, 2022
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