Binance Burns Over 1 Billion LUNC Tokens, but Skeptics Remain About Long-Term Impact

In a recent tweet, Terra Classic Validator, HC Crypto, posted the significant burning of over 1.1 billion LUNC (Terra Classic) tokens by Binance.

Terra Classic (LUNC) Validator HC Crypto recently highlighted another substantial burn of over 1.1 billion LUNC tokens by Binance, a move that is part of a broader effort to support the Terra Classic community.

According to HC Crypto's tweet on Saturday, Binance burned a total of 1,142,098,248.09 LUNC, which was valued at approximately $116,089.76 at the time of the burn. An image attached to the tweet showed the transaction details and confirmed the amount burned.

The burning of LUNC tokens is a strategy used to permanently remove a portion of the tokens from circulation, with the aim of reducing the overall supply and potentially increasing the scarcity of the remaining tokens, which can positively impact their value.

Binance, being the world’s largest cryptocurrency exchange, has played a crucial role in supporting LUNC by facilitating these burns. This involvement has been widely appreciated by the community, with many users expressing their gratitude and urging Binance CEO Changpeng Zhao (CZ) to continue guiding and supporting the digital asset.

In her tweet, HC Crypto also encouraged her followers to engage with the post, asking them to “drop a like” if they believed CZ should continue advising on matters related to LUNC. This call to action seemed to indicate HC Crypto's intention to rally the Terra Classic community around Binance's involvement, which has been critical for the LUNC project's revival following the collapse of Terra Luna in May 2022.

While Binance's burns are making a significant contribution to reducing the token supply, some community members remain skeptical about the long-term impact on LUNC's value.

One crypto enthusiast, responding to HC Crypto's tweet, offered a more cautious perspective on the potential for LUNC to achieve a substantial price increase.

The user highlighted that the current circulating supply of LUNC is around 6.722 trillion tokens. Based on this supply, they calculated that if the burn rate continues at the pace of 1.1 billion tokens, it would take approximately 6,156 months to burn through the entire supply. This translates to about 513 years, highlighting the slow pace at which the supply is being reduced.

Additionally, the user pointed out that expecting LUNC to reach a price of $1 is unrealistic, considering its extremely high supply. They maintained that no cryptocurrency with a supply exceeding 50 billion tokens has ever attained $1.

This viewpoint represents a more conservative approach to the token's potential future price, underscoring the challenges that the Terra Classic project faces despite ongoing burn initiatives. Even though the burn mechanism is effective for reducing supply, the process will take an extended period to have a meaningful impact, especially at the current burn rate.

CZ and Binance's involvement in the Terra Classic ecosystem continues to be a critical factor for the project's success, especially with Binance being one of the few parties actively engaged in burning LUNC tokens. Many in the community are hopeful that this will contribute to positive price momentum for LUNC over time.

However, as skeptics have noted, the sheer size of the current supply poses significant obstacles that may require more drastic measures or a reevaluation of long-term expectations.

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