Binance, one of the world’s largest cryptocurrency exchanges, has completed its 26th token burn, incinerating 1.14 billion Terra Luna Classic (LUNC) tokens. This action has triggered a market rally, resulting in more than a 10% increase in the prices of LUNC and USTC.
Binance’s LUNC Token Burn
Since the collapse, Binance has been burning LUNC on the first of each month. In the latest move, it destroyed 1.14 billion LUNC tokens. Following this announcement, LUNC and USTC experienced a temporary spike in prices, reaching double digits.
Diamondhandz, the owner of LuncLive validators, emphasized the significance of Binance’s contribution, expressing gratitude to CEO Changpeng Zhao and his team.
Binance has destroyed 1,142,098,248.09 LUNC for the monthly burn! Thanks to CZ and the company for supporting the LunaClassic community since 2022! LUNC to the moon!
This statement reflects the community’s optimism and ongoing support for revitalizing the Terra Classic ecosystem. CZ’s gratitude stems from a request made by the LUNA community after the 2022 collapse to reduce supply and compensate for their losses, leading to a commitment to burn half of the transaction fees.
LUNC and USTC Surge
Binance has increased the frequency of its token burns in recent months. In September, the exchange conducted LUNC burns six times, a significant increase from the previous monthly schedule. Following the burn announcement, a classic double-digit surge occurred.
In summary, Binance’s token burn of Terra Luna Classic has led to significant price increases for LUNC and USTC. This strategy aims to support market demand by reducing token supply and increasing prices. However, continued burning may not be a positive indicator for the Terra Classic ecosystem’s future, as erasing a supply of 6.7 trillion could take decades.
