The cryptocurrency market does not always work as it seemed to be planned from the start. And some surprises can come – at least for a while – to upset the accepted certainties at the community level. But this kind of situation should not, however, too arrogantly ignore the warnings issued. A fact that is currently demonstrated by the cryptocurrency LUNC, planted like a tombstone on the still warm corpse of the moribund version of the Terra Classic ecosystem. For the latter is exploding, against all expectations, by more than 440% over the last 30 days. But why?
It is impossible to miss the many publications of investors excited by the improbable rise of the cryptocurrency LUNC. The latter leading a return of over 290% over the last two weeks alone. With that little explosive fuel represented by its price, whose zeros line up behind the decimal point like the promise of a takeoff towards $1. And given the current hysteria, it’s best to make it clear that this is absolutely not a goal or a financial investment advice…
Because this case is to be included in the memecoins trend. That is to say a very risky investment based much more on speculation than on fundamentals. A little on the model of Dogecoin (DOGE), whose leash clearly belongs to Elon Musk. And with this objective of making quick profits by ignoring the warnings issued in the face of what looks like a speculative bubble whose instability remains obvious. This does not mean that the game is not worth the candle. But taking into account that the risks are very high and that the train has probably already passed.
Terra Classic – LUNC Cryptocurrency Explosion
The crypto-currency LUNC is exploding and publications showing gains – always theoretical – are multiplying on social networks. For its price has simply increased by more than 5 times in a few weeks. From $0.00009 at the end of August to more than $0.0005 at the time of writing this article. A move that clearly goes against the grain of the current bear market. And whose reasons deserve to be analyzed, to understand its origin.
And the first cause is undoubtedly the recent implementation of a staking offer for holders of LUNC crypto-currencies. The latter officially launched on the Terra Classic network since August 27, with a reported annualized return of 37.8%, which makes it one of the largest in the ecosystem at the moment. For this reason, almost 9% of its available quantity (6900 billion units) is already out of circulation, that is 610 billion LUNC. And, as a result, a scarcity accompanied by a craze that could explain the starting point of the current rise.
Terra Classic – LUNC cryptocurrency burn
But that’s not all. Because the logic behind this rise of the LUNC cryptocurrency is clearly not related to a development of the Terra Classic ecosystem. But much more to the combination of several cumulative processes designed to bring down its supply simply surreal… and worthy of a shitcoin. And the second of these is none other than the unit burn proposed by a community member (Edward Kim). This about a 1.2% tax on all on-chain transactions of LUNC cryptocurrencies starting in early September. With the destination being a dead address that would sign off on its permanent disappearance from circulation.
“Terra Classic (LUNC) is soaring >37,000% since its low after Terra’s collapse. This follows a proposal to implement a 1.2% token consumption tax on all transactions, which will allow the LUNC cryptocurrency to become deflationary.”
Can we really talk about “deflationary cryptocurrency” when the quantity available is counted in trillions of units? Even though, according to data from the LUNC Burner site, this currently represents the destruction of more than 3.7 billion LUNC… but only 0.05% of its supply! A no-brainer for investors in the Terra Classic project, or perhaps more accurately the LUNC cryptocurrency. And, for the moment, the posted returns seem to prove them right. But for how long?
Because the meteoric rise of the last few weeks is undoubtedly preparing for an inevitable and impossible to anticipate correction. And it will most certainly match this surge, which has all the hallmarks of artificiality. With investors more interested in selling at the right time to reap the profits than in reviving the Terra Classic network, which nobody seems to really care about in this case. Which is why it’s best to stay away from the excitement, or face the consequences and potential losses if you enter this crazy race.