The post Terra Luna Classic Burns LUNC And USTC Holdings, LUNC Price To $1? appeared on BitcoinEthereumNews.com.

Terraform Labs (TFL) has executed a large-scale token burn of 251 billion Terra Luna Classic (LUNC) and 264 million TerraClassicUSD (USTC) tokens from circulation. The burn was part of a settlement with the U.S. Securities and Exchange Commission (SEC) that required TFL to dispose of specific assets held in its Shuttle Bridge wallets.  This move has fueled speculations of a potential rally in the LUNC price, sparking discussions in the crypto community about the possibility of LUNC reaching the $1 mark. Terra Luna Classic Burns LUNC and USTC Holdings According to an update on X (formerly Twitter), the recent burn event is linked to TFL’s decision to permanently shut down the Shuttle Bridge, a cross-chain transfer solution for Terra Classic tokens. As a precautionary measure and to avoid any legal complications, TFL closed the bridge on the 31st of October, 2024. In the US SEC settlement, TFL committed to destroying the tokens stored in the Shuttle Bridge wallets with a view to meeting regulatory requirements. The burn took out around 4% of the LUNC supply, which stands at around 5.45 trillion tokens. Although this could be seen as significant when looking at the numbers, market experts posit that this could be insufficient to make the prices skyrocket due to lack of enough demand. TerraClassicUSD (USTC) also received a significant reduction with its 264 million tokens burnt while this accounts for a lesser part of its 5.56 billion circulating supply. LUNC and USTC Price Reaction Despite the substantial reduction in circulating supply, the market reaction has been restrained. LUNC price saw an increase of 3%, while USTC price rose by 1.70%, according to CoinMarketCap data.  Analysts attribute the limited price movement to the overall large supply of these tokens, as the recent burn represents only a fraction of the total amount…

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Filed under: News - @ November 5, 2024 1:21 am