Terra Classic Slumps After Binance Reveals Plans to Reduce LUNC Burn Contribution by 50%

Terra Classic woes continue as Binance announced a notable change in its LUNC burn contribution. The impact of this development triggered a further decline in the price value of LUNC on Wednesday and a large drop in the asset’s market capitalization which lowered its ranking on the popular crypto-tracking platform, Coinmarketcap.

As earlier reported by TimeTabloid, the dominant cryptocurrency exchange said on Monday that it can no longer burn 100% LUNC derived from spot and margin trading fees.

Read Also: It May Take 5 Years to Burn 9% of Terra Classic Total Supply. Is LUNC Race to $1 Still Feasible?

According to Binance, the decision is to ensure LUNC trading fees will be excluded from being re-minted. More so, Binance requested that its wallets are whitelisted so that the 0.2% transaction tax is not applied when inter-transfers are executed. 

It bears mentioning that Changpeng Zhao’s Binance is the major contributor to the Terra Classic supply reduction mission. The LUNC community believes that reducing the asset’s total supply from roughly 6.9 trillion to 10 billion would increase the token’s price. So far, only about 36.7 billion tokens have been burned and Binance alone destroyed 20.1 trillion. 

As a result of this future decrease in Binance’s contribution to the Terra Classic burn initiative, LUNC’s price slipped considerably on Wednesday to as low as $0.00014633 from its yesterday’s high of $0.00017699. At press time, LUNC is trading for $0.0001465 per coin.

Read Also: Terra Classic (LUNC) Price for January 1, 2023, Predicted by Machine Learning Algorithm

Aside from the 17.3% decline in its price value recorded in a 24-hour candle, the market cap of LUNC has equally fallen extensively, taking the project two positions lower on Coinmarketcap’s ranking. 

LUNC, which sat as the 38th-largest cryptocurrency by market cap as of December 28, is now sitting at the 40th position with a market capitalization of $873,300,154, at the time of writing.

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