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LUNC fee burning: Will Coinbase and KuCoin heed community calls to join Binance and burn fees?

By Raphael Sanis

Edited by Charlie Mellor

11:31, 11 October 2022

The Terra Classic (LUNC) name and logo appear floating above a smartphone
Despite being abandoned by its founder and core developers, Terra Classic still has a dedicated community – Photo: Shutterstock

Coinbase is the latest exchange to be pressured by the Terra Classic community to relist the LUNC token and implement its 1.2% burn tax.

In September, LUNC introduced a 1.2% tax on every transaction. These trading fees are then burned to improve the price performance of the failed cryptocurrency.

Both Binance (BNB) and KuCoin (KCS) have reintroduced the terra classic cryptocurrency to their exchanges and implemented this burn tax.

BNB to USD

Coinbase petition

A petition has been filed on Change.org to relist the LUNC cryptocurrency on the Coinbase exchange.

The cryptocurrency exchange delisted Terra Classic earlier this year after it crashed in May.

Despite the development team founding the new LUNA2 crypto and LUNC still finding support from its community, neither are listed on Coinbase.

LUNA2 to USD

According to the Change.org petition:

“Since the rebranding of the Luna coin, after it crashed, the community has been working hard to revive the coin and coming up with strategies to burn the minted coin.”

However, only 423 have signed the petition, at the time of writing.

ETH/USD

3,196.30 Price
+0.950% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BCH/USD

371.25 Price
-1.600% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

60,102.55 Price
+2.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.11 Price
+0.740% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

The petition added: “Since we are hitting new ATH’s every day, we are still missing a vast amount of people which trade on Coinbase and Webull and the community would appreciate it if both re-list LUNC back on for trading.”

Binance and KuCoin integrate burn fee

It is not unheard of for a major exchange to listen to the LUNC community. Binance implemented the 1.2% burn mechanism to all LUNC spot and margin trading pairs in response to the community’s proposal.

Binance keeps track of the amount of burned LUNC every week. For the week from 2 October to 8 October, it saw $916,502 worth of terra classic fees destroyed.

KuCoin is another major exchange to implement the burn tax. It charges 1.2% on every withdrawal of LUNC and terraclassicusd (USTC).

KCS to USD

New listing

Recently, on 10 October, the CetoEX cryptocurrency exchange listed terra classic and integrated its 1.2% burn tax.

However, LUNC’s price has not seen much action since this listing. At the time of writing on 11 October, it was down 4% over the past 24 hours and 7% in the previous week.

Yet, it has managed to sustain its $1.7bn market capitalisation, ranking it 32nd out of all cryptocurrencies, above the new LUNA2 coin.

Markets in this article

LUNA2/USD
LUNA2.0 to USD
0.3953 USD
-0.003 -0.780%
BNB/USD
Binance Coin / USD
542.63 USD
6.78 +1.280%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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