Heir of notorious Terra Luna is plunging following effective implementation of burn proposal
Luna Classic holders were waiting for the upcoming 1.2% tax implementation, after which the network would take a step towards becoming deflationary or Ghostchain and would face huge sell-offs. Pressure Because of the “news-sales” phenomenon.
As we have mentioned previously in one of our articles, the LUNC management team decided to propose an implementation of the 1.2% tax that should increase the intrinsic value of the assets and help it to recover from the Luna catastrophe.
Unfortunately, most of the centralized exchanges said that they are not going to accept the 1.2% burn tax, which negates the efforts of the Luna team to provide more speculative value to the assets.
Additionally, after the Ethereum Merge went live, the market faced a large spike in selling pressure. LUNC, however, showed an exceptional performance which, according to Light, was a “marketing strategy” stunt to attract investors who seek nothing but short-term profit and speculation.
How did it end?
The tax was implemented a few hours ago which, as expected, did not result in any major increase in network usage, price performance or anything that would have made the offer significant in any way.
At press time, LUNC is burning around $3,000 worth of token, the market capitalization of the token is at approximately $2 billion. As expected, investors simply dropped support for the token, causing a short-term price drop.
The most recent announcement issued by the South Korean prosecutor’s office regarding the co-founder of Terra Labs has also reignited a downtrend on the asset and lost an additional 11% off its value over the past two days.
