Terra Classic Community Prepares for Mass Burn of USTC and LUNC from TFL Wallets
The Terra Classic community is mobilizing to burn billions of USTC and LUNC tokens currently sitting idle in wallets linked to Terraform Labs (TFL). This move follows TFL’s announcement of burning tokens in their wallets, igniting hopes for a rise in USTC prices.
Burning Billions to Reduce Supply
TFL CEO Chris Amani confirmed the tokens in question will be included in the planned LUNC burn. The burn is expected to happen in the coming months and aims to reduce the circulating supply of both USTC and LUNC within the Terra Classic ecosystem. This reduction is intended to address the significant supply increase that occurred during the Terra-Luna crash.
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Capitalizing on TFL’s Dissolution
The LUNC community’s focus on burning tokens intensified after Terraform Labs and Do Kwon settled a $4.5 billion lawsuit with the U.S. Securities and Exchange Commission (SEC). As part of the settlement, TFL is dissolving its operations entirely after filing for bankruptcy. Terra Classic community members have identified TFL and Luna Foundation Guard (LFG) wallets containing tokens that can be burned during the company’s asset liquidation.
Concerns and Unforeseen Effects
While the community anticipates a substantial price increase for LUNC and USTC after the burn, some remain sceptical about its actual impact. The current price action for LUNC suggests a lack of significant investor interest, with the price hovering around $0.00009 and trading volume down 13% in the last 24 hours.
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USTC, on the other hand, has shown some signs of recovery in anticipation of the burn. However, its trading volume has also decreased by 15%, indicating a cautious market. The true effect of the burn on prices remains uncertain.
Transparency and Monitoring
Questions linger regarding how the community will monitor and ensure the viability of the USTC and LUNC burn process. Transparency will be crucial in maintaining community trust throughout the process.
Looking Ahead
Despite the uncertainty surrounding the burn’s impact on prices, the Terra Classic community’s proactive approach demonstrates its commitment to reviving the ecosystem. The coming months will reveal the effectiveness of this strategy and its influence on the future of LUNC and USTC.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
