The Luna Foundation Guard (LFG) reserves have recently undergone significant changes, raising concerns and discussions within the Terra Classic (LUNC) community. Recent data indicates that LUNC and USTC have been removed from the LFG wallet but have yet to be burned.
This development, shared by crypto enthusiast Bleeves Crypto (@BleevesCrypto) on X, has drawn attention due to its potential impact on the market and the broader Terra ecosystem.
The #lunc and #ustc has been removed from the lfg wallet but has not been burned yet… pic.twitter.com/8nr6YD3A3b
— ₿leeves Crypto (@BleevesCrypto) November 1, 2024
Overview of LFG Reserves
Bleeves Crypto shared a screenshot of the LFG Reserves dashboard, showing a notable decline across various assets. The total reserve balance stands at $64.15 million, a 54.3% decrease from the previous day.
Specifically, the reserve balance in Bitcoin (BTC) is $21.69 million, down by 1.9%, while the Terra (LUNA) reserves have dropped by 6.8% to $42.46 million. Other assets such as AVAX and BNB have seen significant reductions, contributing to the overall decrease in reserve values.
The reserve balance breakdown shows that UST constitutes the majority of the reserves at 66.2%, followed by BTC at 33.8%. Although the LUNC and USTC have been removed from the LFG wallet, it is yet to culminate in the anticipated burn.
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Implications for the LUNC Community
Terraform Labs CEO Chris Amani confirmed this burn in June, which excited the community and caused a brief surge for LUNC. However, the removal of the tokens without immediate burning has generated mixed reactions.
Historically, significant burns have reduced supply and potential price increases, providing a bullish signal to the market. When Amani shared the news in June, over 6.5 billion LUNC tokens were burned within 24 hours, largely driven by large wallets and movements on centralized exchanges.
This event caused a significant drop in LUNC’s total supply, impacting its market price. However, LUNC and USTC experienced substantial price volatility following the burn. LUNC’s price dropped by 14%, while USTC saw a 3.17% decline.
However, token burns often fuel price increases, and the burns the community anticipates could help LUNC and USTC. At press time, LUNC traded at 0.0000889, showing a 3.38% decline over the past 24 hours, and USTC traded at $0.02201, down 7.12% in the same period.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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