LUNC’s 1.2% tax burn may lead to a brighter future, what about the present

The much-await­ed 1.2% tax burn was imple­ment­ed on the Ter­ra Clas­sic [LUNC] blockchain recent­ly. Thus, giving mas­sive hope to investors for the token’s revival. Though the pro­to­col received much sup­port from mul­ti­ple cryp­to exchange plat­forms, includ­ing KuCoin, LUNC’s price did not cor­re­spond accordingly. 

More­over, just a day after the roll out, it was announced that LUNC’s 1.2% tax burn pro­to­col was fac­ing issues.

BREAKING :

A cou­ple major CEX’s like @binance ran into issues imple­ment­ing the onchain. That’s why #LUNC vol­ume has dropped off. Deposits and with­draws have been suspended. 

Once the issue has been resolved, espe­cial­ly on Binance, burn­ing and vol­ume will explode ⚡️🚀

— LUNC Com­mu­ni­ty 🌓 (@lunaclassic_co) Sep­tem­ber 23, 2022

How­ev­er, investors and enthu­si­asts still remained con­fi­dent despite the set­back. LUNC HODLers believed that LUNC would con­tin­ue surg­ing and reclaim its past glo­ry in the months and years to come. How­ev­er, let’s look at what’s hap­pen­ing in the ecosys­tem to bet­ter under­stand what to expect.

Facts vs Rumors

The infor­ma­tion regard­ing some issues with the pro­to­col when revealed, was fol­lowed by infor­ma­tion that stat­ed devel­op­ers were work­ing on fix­ing the prob­lem. No mat­ter the issue, the good news was that more than four bil­lion LUNC tokens were burnt after the roll out, with a dai­ly burn rate of over 243 million. 

This was def­i­nite­ly a pos­i­tive devel­op­ment, as burn­ing such large amounts would lim­it LUNC’s sup­ply in the future. Thus, dri­ving the price of LUNC high­er in the long run.

🌗Total Burned $LUNC TODAY 

🌗Dai­ly Rate burned 243,589,240

✅RETWEET IF YOU WANT MORE BURN TO HAPPEN #LUNCBURNING #LUNCBURN #LUNC

🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥 pic.twitter.com/gGMgxvypLb

— Luna­Clas­sic HQ 🌕 ™ 𒀭 (@LunaClassicHQ) Sep­tem­ber 22, 2022

Inter­est­ing­ly, amid all these devel­op­ments, some mis­in­for­ma­tion also sur­faced on social media. For instance, peo­ple on Twit­ter did not have much clar­i­ty on the Binance episode. 

A pop­u­lar cryp­to influ­encer, Classy, via Twit­ter men­tioned the actu­al sce­nario, which helped in clear­ing the cloud regard­ing Binance’s posi­tion. He men­tioned that LUNC’s net­work burns are sup­port­ed by Binance, and if added, the burn will sig­nif­i­cant­ly increase.

If you’ve been ask­ing whether or not @binance WILL be sup­port­ing the 1.2% On-Chain $LUNC tax here’s your PROOF!

Some are spread­ing MISINFORMATION on this top­ic.
Binance IS sup­port­ing net­work burns & the burn WILL increase dras­ti­cal­ly once added.

RETWEET TO SPREAD THE MESSAGE!🔥 pic.twitter.com/f01if2G3J5

— Classy 👾 (@ClassyCrypto_) Sep­tem­ber 22, 2022

Here is what to expect

LUNC, which reg­is­tered mas­sive upticks in the last month, failed to meet the expec­ta­tions of investors after the tax burn. At the time of writ­ing, LUNC reg­is­tered neg­a­tive 3.40% 24-hour gains and was trad­ing at $0.0002573 with a mar­ket cap­i­tal­iza­tion of $1,585,327,915. 

Source: Coin­Mar­ket­Cap

Fur­ther­more, data from San­ti­ment also revealed a few rea­sons that might have played a role in this decline. For instance, LUNC’s trad­ing vol­ume decreased con­sid­er­ably over the last few days. Addi­tion­al­ly, the blockchain’s net­work activ­i­ty also fol­lowed a sim­i­lar route of steep decline. 

Source: San­ti­ment

As of 23 Sep­tem­ber, LUNC’s four-hour chart also paint­ed a sim­i­lar pic­ture, as most of the mar­ket indi­ca­tors sug­gest­ed a bear­ish market. 

For instance, the Rel­a­tive Strength Index (RSI) and the Chaikin Mon­ey Flow (CMF), both reg­is­tered downticks. This sug­gest­ed a sell­ers’ advan­tage in the market.

More­over, the 20-day Expo­nen­tial Mov­ing Aver­age (EMA) was below the 55-day EMA, which was also bear­ish. There­fore, what’s in store for the recent­ly revived token is yet to be seen.

Source: Trad­ingView