Following the dramatic downfall of Terra, the community was sure that its native assets LUNC and USTC would make themselves scarce. However, things took a whole different turn. After the creation of a new network and a red notice by Interpol on Do Kwon, LUNC was back making headlines for its sudden pump. This time, Changpeng Zhao’s Binance had a role to play in it.
The world’s largest crypto exchange by market cap, Binance went on to announce a burn mechanism to burn all trading fees on LUNC spot as well as margin pairs. According to the announcement, the amount of LUNC that would be burned along with its equivalent value in USDT as well as on-chain transaction ID will reportedly be shared every week.
This move was introduced as an alternative to its original initiative of a burn-in subscription. Since the LUNC community wasn’t on board with the approach, Binance decided to implement the latest burn mechanism instead.
CZ took to Twitter earlier today and noted shed light on the same.
The Binance CEO believes that with its latest initiative the firm would be fair to all its users. He added,
“This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”
LUNC records a 56% percent surge post-Binance’s move
Earlier today, LUNC was deemed as one of the most unprofitable assets of the week. However, an announcement by Binance pushed its price up by 56 percent within hours.
At press time, LUNC was trading for $0.000320 with a 56% percent surge in the past 4-hours. It should be noted that the asset went from a low of $0.0001825 all the way to its current price.
Time and again, LUNC has shown signs of being extremely volatile. While the duration of its current rally was uncertain, it seems to have lured in many.
Additionally, many think that a number of other centralized exchanges will probably capitalize on the trend and provide a comparable burn mechanism. The community speculates that LUNC has the ability to prolong the current notion if more platforms did the same.