In a recent tweet, Terra Classic Validator, HC Crypto, posted the significant burning of over 1.1 billion LUNC (Terra Classic) tokens by Binance.
The exact figure provided was 1,142,098,248.09 LUNC, which, according to HC Crypto, was equivalent to approximately $116,089.76 at the time of the burn. The image attached to the tweet confirms this amount and shows the transaction details, including the addresses involved.
The LUNC burn was part of an ongoing effort by Binance, the world’s largest cryptocurrency exchange, to support the Terra Classic community by reducing the overall token supply.
Token burns, a process in which tokens are permanently removed from circulation, are typically conducted to create scarcity, which can potentially enhance the value of the remaining tokens.
Binance’s continued commitment to LUNC has been widely appreciated by the community, with many users encouraging Binance CEO Changpeng Zhao (CZ) to continue providing guidance and support for the digital asset.
In her tweet, HC Crypto encouraged her followers to engage with the post, asking them to “drop a like” if they believed CZ should continue advising on matters related to LUNC.
The call to action indicates HC Crypto’s intent to rally the Terra Classic community around Binance’s involvement, which has been critical for the LUNC project’s revival after the collapse of Terra Luna in May 2022.
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Community Reaction and Skepticism
However, while Binance’s burns are making a significant dent in the token supply, some community members remain skeptical about the long-term impact on LUNC’s value. One crypto enthusiast responded to HC Crypto’s tweet, offering a more cautious outlook on the potential for LUNC to reach a substantial price increase.
The user pointed out that the current circulating supply of LUNC stands at around 6.722 trillion tokens. Based on this supply, they calculated that if the burn rate continued at the pace of 1.1 billion tokens, it would take approximately 6,156 months to burn through the entire supply.
This translates to about 513 years, highlighting the slow pace at which the supply is reduced. Additionally, the user emphasized that the expectation of LUNC reaching a price of $1 is unrealistic, given the extremely high supply. They argued that no cryptocurrency with a supply exceeding 50 billion tokens has ever attained $1.
This viewpoint represents a more conservative approach to the token’s potential future price, underscoring the challenges the Terra Classic project faces despite ongoing burn initiatives. Even though the burn mechanism is effective for supply reduction, the process will take an extended period to have a meaningful impact, particularly at the current burn rate.
CZ and Binance’s involvement in the Terra Classic ecosystem continues to be a critical factor for the project’s success.
Binance’s burn initiative is one of the few major efforts actively working to reduce LUNC’s circulating supply, and many in the community are hopeful that this will drive positive price momentum over time.
However, as highlighted by skeptics, the sheer size of the current supply poses significant obstacles that may require more drastic measures or a reevaluation of long-term expectations.
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.
