Why Is LUNA Pumping?

Vignesh Karunanidhi
Why Is LUNA Pumping?
Source: Finder.com

Terra and LUNA went through the most brutal month following the depeg, with LUNA hitting rock bottom. LUNA went straight to $0 without hesitation, wiping investors’ funds. Many investors lost their life savings in days.

LUNA’s fall took the cryptocurrency world by storm as it fell to zero even before investors could get their heads wrapped around what was happening.

While Do Kwon announced “revival plan 2”, the preliminary voting showed that 92% of the voters were against the proposal. The proposal suggests a Terra Luna “Hard Fork” where the new chain will not be connected to UST. Even though the preliminary voting did not favor Do Kwon, the official governance voting revealed 80% of votes in favor of the new proposal.

Why did LUNA go up +100% in 24 hours?

Luna began pumping in the last 24 hours of trading, spiking +100% over the weekend. The primary reason for the hike can be attributed to the difficulties traders face in shorting it, as most of the major exchanges have halted margin trading and are yet to bring it back. The bringing back part is still out of the box as LUNA displayed the highest volatility, taking away the trust of investors and major exchanges.

Last weekend, LUNA exhibited a similar show by pumping a 3000% only to drop and dip to red. Investors have been pumping LUNA in the hope of making some quick bucks. The +100% pump follows everyone’s assumption that there is no resurrection for LUNA.

Source: Coingape

There have been allegations spreading about Do Kwon that he has been evading tax, and the South Korean government has imposed a 100 million won fine in his name.

Most of the LUNA community members also proposed the idea of burning the token to beat the hyperinflation of the coin. The current total supply of the coin stands at a whopping $6.9 trillion.

The current pump might also be attributed to LUNA’s burn, evident from a user’s recent tweet. A user tweeted Do Kwon asking him to send him a burn address, and he replied to the user with an address.

While most investors seem to be vouching against Do Kwon, one specific user gave a consoling reply to Do Kwon as the user said, “I understand. It’s probably been real hard on you.”

Appreciate the thorough cross examination, but we’ve never done anything shady and lived and breathed by whats best for this community for the last five years. Everyone that worked with us hopefully understand this, and we look forward to proving going forward.

Do Kwon’s reply to the tweet

As of now, it’s unclear as to what holds for LUNA in the future. The only clear thing is that the Terra team has to come up with the right plan to regain the trust of the investors, who went through the most harrowing market fall of their life.