Luna Classic (LUNC) crashes -23% after Binance update
Luna Classic pumped 46% in price from December 22-27, to hit a monthly high, and reach $0.00019.
But LUNC then erased nearly all its gains on December 28th. The price of LUNC fell down to $0.00014 and ended the price pump that nearly brought Luna Classic back into the crypto top 20.
Both the LUNC price pump and the price crash were linked to news stories.
At first, a rumour circulated that Coinbase would soon buy Luna Classic and list the token on its exchange. This rumour is unconfirmed, but created investment. Then Binance issued an update to announce it would burn just 50% of all LUNC trading fees collected by the burn tax.
Here’s what you need to know.
Luna Classic burn rate crashes – no hope for $1 LUNC price
If you buy just $200 worth of LUNC today you’d be a crypto millionaire by the time Luna Classic recovers to $1.
But here’s the thing.
Back in September 2022, the Luna Classic burn tax collecting 1.2% of all trading was on track to reduce the LUNC supply by the trillions – this could have seen a $1 LUNC token within the next decade.
But then the community reduced the burn tax down to 0.2%. The burn rate fell by half.
And now, with 50% of all funding collected by that reduced tax and 50% used for ecosystem development, LUNC is way off track. It’s not likely that LUNC will reach $1 price even in the next 100 years.
Why can’t LUNC hit a $1 price without burning?
There are currently 6 trillion Luna Classic tokens in circulation.
Here’s the implied market cap Luna Classic requires to hit the following prices:
- $0.001 price – $6 billion market cap
- $0.01 price – $60 billion market cap
- $0.1 price – $600 billion market cap
- $1 price – $6 trillion market cap
A $6 trillion market cap would make LUNC six times larger than the entire crypto industry today. That means 18 times larger than Bitcoin. Given that optimistic estimations put the crypto industry’s market cap at $4.5 trillion by 2030, there’s a long way to go until the 40th largest token by market cap is worth $6 trillion.
In November some 9.2 billion LUNC tokens were burned.
If that now halves to 4.6 billion, then it would take over 109 years until the LUNC supply meets the current market cap.
Can LUNC do anything to improve the burn rate?
An obvious move would be to introduce new proposals to increase the burn rate once more.
Compare LUNC with the leading hyper-deflationary token EverGrow. EverGrow destroyed almost 1% of its supply in November 2022 and is on track for the same explosive price breakouts you’d get when LUNC hits $1 – just it’s going to happen in the next 10 years.
EverGrow burns the most supply of any other crypto in the industry. It burns tokens by a transaction tax (2% set aside for burns) and through an ecosystem of apps which each send 100% of revenue towards burning EverGrow.
For example: the LunaSky NFT marketplace sends 100% of revenue from minting fees and transaction fees to burn EverGrow.
This will be joined in 2023 by an EverGrow wallet, a crypto social media app, and a play-to-earn metaverse gaming experience.
There’s still a lot of voting going in the LUNC community, so by backing proposals to up the burn rate or create new burn mechanisms you could help LUNC hit $1 much earlier than currently predicted.
Read more about how EverGrow does it: https://evergrowegc.com/
The post Luna Classic (LUNC) crashes -23% after Binance update appeared first on Analytics Insight.
Luna Classic pumped 46% in price from December 22-27, to hit a monthly high, and reach $0.00019.
But LUNC then erased nearly all its gains on December 28th. The price of LUNC fell down to $0.00014 and ended the price pump that nearly brought Luna Classic back into the crypto top 20.
Both the LUNC price pump and the price crash were linked to news stories.
At first, a rumour circulated that Coinbase would soon buy Luna Classic and list the token on its exchange. This rumour is unconfirmed, but created investment. Then Binance issued an update to announce it would burn just 50% of all LUNC trading fees collected by the burn tax.
Here’s what you need to know.
Luna Classic burn rate crashes – no hope for $1 LUNC price
If you buy just $200 worth of LUNC today you’d be a crypto millionaire by the time Luna Classic recovers to $1.
But here’s the thing.
Back in September 2022, the Luna Classic burn tax collecting 1.2% of all trading was on track to reduce the LUNC supply by the trillions – this could have seen a $1 LUNC token within the next decade.
But then the community reduced the burn tax down to 0.2%. The burn rate fell by half.
And now, with 50% of all funding collected by that reduced tax and 50% used for ecosystem development, LUNC is way off track. It’s not likely that LUNC will reach $1 price even in the next 100 years.
Why can’t LUNC hit a $1 price without burning?
There are currently 6 trillion Luna Classic tokens in circulation.
Here’s the implied market cap Luna Classic requires to hit the following prices:
- $0.001 price – $6 billion market cap
- $0.01 price – $60 billion market cap
- $0.1 price – $600 billion market cap
- $1 price – $6 trillion market cap
A $6 trillion market cap would make LUNC six times larger than the entire crypto industry today. That means 18 times larger than Bitcoin. Given that optimistic estimations put the crypto industry’s market cap at $4.5 trillion by 2030, there’s a long way to go until the 40th largest token by market cap is worth $6 trillion.
In November some 9.2 billion LUNC tokens were burned.
If that now halves to 4.6 billion, then it would take over 109 years until the LUNC supply meets the current market cap.
Can LUNC do anything to improve the burn rate?
An obvious move would be to introduce new proposals to increase the burn rate once more.
Compare LUNC with the leading hyper-deflationary token EverGrow. EverGrow destroyed almost 1% of its supply in November 2022 and is on track for the same explosive price breakouts you’d get when LUNC hits $1 – just it’s going to happen in the next 10 years.
EverGrow burns the most supply of any other crypto in the industry. It burns tokens by a transaction tax (2% set aside for burns) and through an ecosystem of apps which each send 100% of revenue towards burning EverGrow.
For example: the LunaSky NFT marketplace sends 100% of revenue from minting fees and transaction fees to burn EverGrow.
This will be joined in 2023 by an EverGrow wallet, a crypto social media app, and a play-to-earn metaverse gaming experience.
There’s still a lot of voting going in the LUNC community, so by backing proposals to up the burn rate or create new burn mechanisms you could help LUNC hit $1 much earlier than currently predicted.
Read more about how EverGrow does it: https://evergrowegc.com/
The post Luna Classic (LUNC) crashes -23% after Binance update appeared first on Analytics Insight.
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.