Terra Luna price: In response to the proposal of a 1.2% tax burn on the Terra Classic (Lunc) network, investors from the Terra community made significant purchases of Luna. Terra’s tax burn plan has received support from significant crypto exchanges.
The Reign of Terra Luna! During Friday’s session, Terra Luna rose to become the 58th-largest cryptocurrency on CoinMarketCap. The Luna token has outperformed the overall market in the past day, rising more than 200%. In response to the idea of a 1.2% tax burn on the Terra Classic (Lunc) network, investors in the Terra community have made significant purchases of Luna. Major crypto exchanges have supported Terra’s tax burn plan. Terra’s tax burn plan has received support from significant crypto exchanges.
On CoinMarketCap, Luna is currently performing at $5.96, up 206.07% as of the time of writing. There is about 216.37% upside for the week. The market capitalization of the token exceeds $3.10 billion. The token has reached its day’s high of $6.91 over the past 24 hours.
From its all-time low of $1.53 on August 29 of this year, Terra LUNA has increased significantly over the past 24 hours, rising by nearly 352% overall.
Overall, the token performed even better than prominent cryptocurrency leaders Bitcoin and Ethereum, which have increased by over 9% and almost 5%, respectively. The global crypto market cap reached $1.04 trillion as a result of widespread cryptocurrency buying.
The rally in Luna Classic (LUNC) is probably being fueled by a “tax burn” regime that aims to reduce the token’s excessive supply, according to Dileep Seinberg, founder and CEO of MuffinPay, bill payment, and utility cryptocurrency.
On the Terra Classic network, Terra received approval for a 1.2% tax burn for transactions involving LUNC and USTC. The tax parameter is being changed from its current value of 0 to 0.012 (1.2%) using these proposals.
The 1.2% tax will be imposed on all of the on-chain currency denominations currently in use, including LUNC and USTC, according to Terra governance.
After the proposal is accepted, Terra’s 1.2% tax burn goes live on September 20 at the Terra Classic block height of 9,475,200.
The Terra Classic Lunc, which yesterday ranked among the top 30 cryptocurrencies, was trading on Friday at $0.0004657, down 13.4%.
Huobi and BTCEX, two cryptocurrency exchanges, are the most recent to support Terra’s 1.2% tax burn plan. Additional exchanges have also declared their support, including MEXC Global, Kucoin, and Gate.io. Binance, the largest cryptocurrency exchange in the world by trading volume, has chosen not to apply for the tax burn plan of Classic.
“Binance will review and amend the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for LUNC and USTC via Terra Classic network,” the cryptocurrency exchange said in a notification on Thursday.
Binance informed users that deposits would be subject to Terra Classic network fees prior to reaching Binance. Your Binance account will receive the balance following the network’s 1.2% tax deduction.
In contrast, Binance said that for withdrawals, users would receive their money less the withdrawal fees it charges and the network’s 1.2% tax deduction.
In May of this year, Terraform Labs co-founder Do Kwon launched Terra 2.0, under which the original Terra chain was rebranded as Terra Classic, amid the flash crash of Terra USD and old Luna. While a brand-new chain called Luna was developed using the name Terra and made tradable.
A few months ago, the USTC and old Luna crash, which purportedly destroyed $40 billion in wealth, dominated the hype in Terra tokens. The anxiety first surfaced in mid-May after Terra’s USD lost its $1 peg. Old Luna tokens collapsed to zero levels as a result, causing both Terra sisters to fall precipitously. Wealth vanished for investors, exchanges, and businesses that had placed a lot of faith in Terra USD in the first few months of 2022. The industry is still struggling to survive the severe liquidity crunch caused by the impact of Terras in mid-May. The tokens have been erratic since the release of Terra 2.0, but they have gained traction recently.
It raises the question of whether the current meteoric rise in the value of Terra tokens marks the start of a promising bull run. Or could it be a covert bear-run opportunity?
Where will Terra tokens go?
Vice President of WazirX Rajagopal Menon noted that Terra Luna Classic recently increased from 10,000 to 12,500 points per coin. Why Terra Luna Classic was falling, whether it would ever be re-pegged, and whether it would ever be able to stabilize the UST once more were all hot topics in May. The discussion then gradually turned to which of Terra Luna Classic and Terra Luna 2.0 would be superior.
“Let’s build up Terra Luna Classic, let’s rebuild this community, “We are the LUNAtics, We are Strong,” has always been the sentiment in the community, Menon continued.
Investors are buying in anticipation of the price rising from about 8,000 points per coin to about 10,000 points per coin, and then to 12,500 points per coin today, according to WazirX VP, “On the 26th August, staking has been re-enabled on the Terra Luna classic blockchain and Orion Money has officially downloaded version 22 to re-enable staking and include the burning tax.”
Seinberg continued, “At this point, Luna remains a volatile trade, and the new burn scheme will not materially alter the coin’s fundamentals. One should avoid such trades, and enter only if they have a suitable exit strategy during both upside and downside.”
Disclaimer: The information in this article is solely the author’s opinion, not financial advice, and is only being made available for educational purposes. By doing so, you acknowledge that the information is not intended to serve as investment advice or financial guidance. Before making any investment decisions, be sure to do your own research and consult with financial advisors.