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Binance burned 5.5 billion Luna Classic, but it did not help the token

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Binance burned 5.5 billion Luna Classic, but it did not help the token

Crypto exchange Binance announced that it was burning $1.7 billion worth of Luna Classic (LUNC) tokens. This amount was received in the form of commissions from transactions with the token from September 21, 2022 to October 1, 2022.

Binance Burns LUNC

Prior to the burn, Binance converted fees received in other tokens into LUNC. The trading platform calculates commissions to be burned every Monday at 00:00:00 UTC.

Tokens are burned by sending them to a special so-called “burn wallet”. LUNCs sent there become inaccessible to users – this is how the exchange reduces the number of coins in circulation.

ID of the same burn wallet: F6B1CB656843438013D3C9A5948A1353AA3C65F6AE30D627AF791EEE0311AA36

Binance implemented burning mechanism to improve the trading experience after the LUNC community suggestion. According to Binance, this process will not affect LUNC’s spot and margin trading fees, which will remain at 0.1%.

After the collapse of the stablecoin TerraUSD and its sister coin LUNA in May 2022, Terraform Labs co-founder Do Kwon announced a plan to restore Terra. And so a new fork of Terra appeared. The LUNA coin has remained on the original blockchain, but is now called Luna Classic (LUNC). Shortly thereafter, Binance decided to list LUNC as a purchasable token.

LUNC traders reacted mostly negatively to the burn rates.

Over the past 24 hours, LUNC’s price has risen 59.4% to $0.00031654 as traders anticipated the outcome of a classic “buy the rumor, sell the news” scenario.

After the publication of data on profits and losses, the reaction of traders was mixed. One trader, Tree_of_Alpha, notedthat the sum of the value of all burned LUNCs was only 0.09% of the market capitalization of the coin.

Another trader, kcryptojunkie, advised traders to sell the coin by tweeting: “Dump-dump”.

At the same time, MikeHerzig5 praised Binance and Exchange CEO Changpeng Zhao (CZ) for their initiative and encouraged other exchanges to follow suit.

Binance will burn all transaction fees for LUNC spot and margin trades between October 2, 2022 and October 8, 2022 or Monday, October 10, 2022.

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Source: Cryptocurrency

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