Over 2B LUNC, USTC Burned As Terra Gets Rid Of Luna Classic
On-chain records showcase a massive burn of Terra system’s native tokens, sparking rebound hopes for LUNC holders.
Better days are coming soon for the game-tested Terra Luna Classic (LUNC) community, as the altcoin’s parent company TerraForm Labs is forced by the U.S. Securities and Exchange Commission (SEC) to wind down operations.
Terra Burns Big Pile Of LUNC & USTC
For the LUNC community, there’s a bi-folded benefit in these circumstances, as the $4.47B settlement with the SEC obliges TerraForm Labs to get rid of all their Terra Luna token reserves. Not only that solidifies independence from the embattled fintech company, but also eliminates a big portion of Terra Luna Classic (LUNC) and Terra Classic USD (USTC) coins from circulation.
The latest on-chain records show that the wait is over – Luna Foundation Guard (LFG) processed two crucial burning transactions today, eradicating 211,577,500 LUNC and 1,754,725,793 USTC tokens and restoring some optimism among community members.
After this LUNC & USTC burning deed, the malfunctioning USTC stablecoin’s supply has been cut down to 5,596,629,711, while Terra Luna Classic’s (LUNC) highly overminted supply plunged to 5,443,544,767,812 tokens. These deflationary tactics aim at long-term sustainability, while neither Terra Classic, nor the USTC coin had seen immediate price appreciation.
Why Terra Luna Classic’s Price Lags
With over $19 million down the drain, this supply cut for USTC & LUNC could only bear fruit in bullish price momentum if Terra Luna Classic’s chain picks up a significant trading volume. Currently, Terra Classic is on the verge of exiting the TOP 200 by global market cap, nabbing just $12.9 million in trades in the latest 24-hour frame.
And so, short-sellers, known as bears in crypto slang, have annihilated a major LUNC support level at $0.00006, Terra Luna Classic’s price could face a further freefall. Meanwhile, things are not looking better for USTC, as the de-pegged stablecoin is trading at a 1.1% fraction of its original price. Grasping twice as less in trading volume as LUNC, the $1 re-peg dream for USTC is still far away.
