LUNC surges more than 50% in a week. What’s behind the rise?
11:57, 3 October 2022
Terra classic (LUNC) has seen an increase in value of more than 50% in a week.
LUNC was $0.0002039 on 26 September and rose to 0.0003208 on 3 October, an increase of 57%, according to CoinMarketCap .
On 2 October LUNC rose to $0.0003596, an increase of 76% compared to the start of the week.
LUNC was created after the collapse and depegging earlier this year (2022) of the stablecoin TerraUSD (UST), which then impacted its sister coin Terra (LUNA). The collapse led to the creation of the original LUNC and the birth of the new LUNA token.
LUNA2 to USD
Why has LUNC risen?
Binance, the world’s largest cryptocurrency exchange by trading volume, announced on 26 September it will burn trading fees on LUNC. This resulted in an immediate rise in the token’s value of 60%.
Binance said: “In response to the LUNC community proposal on burning trading fees while maintaining a good trading experience for users, Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.”
This has led to “lunatics” asking other crypto exchanges such as Coinbase, the largest cryptocurrency exchange in the US to list LUNC. More than 200,000 tweets so far have called for this.
There have also been calls for LUNC to be listed on Gemini, the New York-based crypto exchange founded by Cameron and Tyler Winklevoss.
Terra Classic’s bullish September
One Terra Classic community member, Edward Kim, made a proposal in early September that a 1.2% “burn tax” on every transaction be introduced, with the hope of reducing the token’s current supply from 6.9 trillion to 20 billion.
The immediate aftermath of this proposal was LUNC increasing in value sixfold.
These increases in value for LUNC have come despite more attention being placed on the new Terra crypto. In August, Illiquid Labs, a non-fungible token (NFT) infrastructure toolbox, started to offer NFT migration from Terra Classic to Terra 2.0.
So far, the NFT migration is available to Terra Classic NFT projects including Galactic Punks, Space Toadz, Lootopians and Meta Royals NFTs. In a tweet, Illiquid has said more NFTs will be available to migrate soon.
The Knowhere NFT marketplace is now also “fully up and running on Terra 2.0”.
Interpol seeks Do Kwon
Interpol has issued an international “red notice” for Do Kwon, the co-founder and CEO of Terraform Labs, the company behind the stablecoin TerraclassicUSD (USTC) and its sister token LUNC.
The move came after a South Korean court put out an arrest warrant on Kwon earlier in September and asked Interpol to circulate a red notice on him.
Five other individuals associated with Terraform Labs also have arrest warrants out on them in South Korea, accusing them of violations of the nation’s capital markets law.
In the immediate aftermath of the red notice, LUNC only fell by 10%, according to CoinMarketCap.
Kwon has been tweeting regarding the Interpol search for him.
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