© Reuters
Investing.com – After being by far the best performing cryptocurrency in the Top 100 last week, and after peaking at $0.0003657 on Sunday, the has fallen sharply, reaching a low of $0.0002991 last night, a drop of more than 18% in about 36 hours.
Recall that LUNC had started to take off on September 26, following a low at $0.0001820. The crypto therefore posted on Sunday’s peak an increase of +100% in less than a week.
And if the beginning of the current correction on Sunday was linked to profit taking, the accentuation of yesterday’s fall is itself linked to a disappointment.
Indeed, cryptocurrency exchange Binance released its first weekly LUNC token burn report, a feature it announced last week, which was behind the rise in Classic.
Since the mechanism was implemented a week ago, Binance has destroyed – “burned” in crypto terms only $1.8 million worth of LUNC, according to a tweet Monday from Binance CEO Changpeng “CZ” Zhao .
This amount represents only 0.08% of the total supply of the token, too tiny to have a measurable impact on supply.
Note that during the day on Sunday, anticipations of 10 to 20 million dollars of burnt LUNC tokens were circulating. The figures announced by Binance yesterday are therefore very disappointing.
Recall that the LUNC is the native token of the Terra Classic blockchain, which imploded last May, resulting in a loss of $60 billion in market value.
The burn was calculated based on the trading volume of the token between September 21 and October 1. Binance therefore withdrew 5.6 billion tokens from circulation.
Knowing that the total circulating supply of LUNC is 6.8 trillion tokens, the burn rate amounts to a measly 0.08% of the total supply, which was deemed insignificant.
However, despite the disappointment of Binance’s disappointing numbers, Terra Classic (LUC) remains up more than 70% from its price prior to the announcement of Binance’s LUNC token burning mechanism.