Terra Classic Pumps Despite Binance’s Halt Announcement

Paigambar Mohan Raj
Source: CryptoSlate

After a historic fall from grace, the old Terra network, Terra Luna Classic (LUNC), seems to have become one of the highest gainers of late. The token is currently up by 55% in the last 24 hours. On the weekly charts, the tokens’ performance is even more impressive. LUNC has gained up to 203.6% in the last seven days, up to 336.6% in the last two weeks, and up to 300.5% in the last month.

LUNC’s rally comes regardless of Binance announcing a suspension of deposits and withdrawals of Terra Classic and TerraClassicUSD (USTC). Binance’s decision comes after the announcement of the closure of the Shuttle Bridge.

Source: Coingecko

The fall of the Terra network was one of the most dreadful moments in not just crypto, but in a larger financial world. Many compared the collapse to that of the 2008 financial crisis. The network was at the heart of the summer 2022 crypto market crash. Moreover, it had a chain reaction across the Defi space, affecting every project that had exposure to LUNC (then known as LUNA).

However, many are in hope that the project can make a comeback. By the looks of its current performance, it is not surprising investors are full of hope.

So what’s pushing Terra Luna Classic?

As reported earlier, the most likely development that has helped LUNC into triple-digit gains is the v22 upgrade. The upgrade allowed investors to resume staking on the network. According to Staking Rewards, LUNC offers rewards up to 37.8%, which is very attractive to investors.

Source: Staking Rewards

However, that’s not all. A proposal was recently made to change the tax parameter on Terra Luna Classic. According to the proposal, taxes should be levied and then burned for on-chain activities. However, the tax will not be applicable to off-chain activities such as trading on CEXs. The proposal was put forward by Edward Kim, who is an associate professor of Computer Science at Drexel University.

Now Binance’s decision to halt deposits and withdrawals does not affect the taxation and burn proposal as it is a centralized exchange. That is probably why investors have remained unmoved by the exchange’s decision.

At press time, LUNC was trading at $0.00040161, up by 5.8% in the last hour.