At the time of writing, Luna is performing up 206.07% at $5.96 on CoinMarketCap. Its weekly jump is around 216.37%. The token has a market cap of over $3.10 billion. Over the past 24 hours, the coin has seen an all-day high of $6.91.
From its all-time low of $1.53 on August 29 this year, Terra Luna Overall, there has been a strong gain of around 352% in the last 24 hours.
Overall, the token even outperformed major crypto leaders such as Bitcoin and Ethereum which have risen by over 9% and around 5% respectively. There is broad-based buying between cryptocurrencies that has pushed the global crypto market cap to $1.04 trillion.
“Luna Classic (LUNC) has nearly doubled in the past week,” said Dilip Seinberg, founder and CEO of Muffinpay, bill payment and utility crypto. A “tax burn” regime that aims to reduce the hyperinflated supply of tokens rally can promote.”
Terra received approval for a 1.2% tax burn for on-chain transactions of LUNC and USTC on the Terra Classic network. These proposals are being developed to change the tax parameter from its current value of 0 to 0.012 (1.2%).
According to Terra Governance, a 1.2% tax will apply to all currency denominations currently available on-chain, including LUNC and USTC.
Terra’s 1.2% tax burn will go live on September 20 after the offer is submitted at the Terra Classic block high of 9,475,200.
On Friday, the Terra Classic Lunch, which entered the top 30 cryptocurrencies list yesterday, was trading at $0.0004657, down 13.4%.
Crypto exchanges Huobi and BTCEX are the latest to support Terra’s 1.2% tax burn plan. Other exchanges such as MEXC Global, Kucoin and Gate.io have also announced their support. However, Binance, the world’s largest crypto exchange in terms of trading volume, has decided not to apply for Classic’s tax burn plan.
On Thursday, Binance said in its notification, “Binance will review and revise the minimum withdrawal amount, maximum withdrawal amount and withdrawal fee for LUNC and USTC via the Terra Classic network.”
As for deposits, Binance has informed that transactions will be taxed by the Terra Classic network prior to reaching Binance. The balance will be credited to your Binance account after the network deducts 1.2% tax.
Meanwhile, for withdrawals, Binance said that users will receive the withdrawal amount minus the withdrawal fee charged by Binance plus a 1.2% tax deduction by the network.
In May this year, amid the flash crash of Terra USD and the old Luna, TerraForm Labs co-founder Do Kwon launched Terra 2.0, whereby, the original Terra series has been rebranded as Terra Classic. While a new series called Luna was created with the existing name Terra and made available for trade.
A few months ago, the hype in Terra Token was about the crash of USTC and the old Luna which reportedly wiped out $40 billion worth of assets. Fear emerged in mid-May when Terra’s USD erased its peg of $1. This led to a deep free fall in both the Terra sisters and the old Luna coin to the zero level. The early months of 2022 saw investors, exchanges and firms placing great faith in the Terra USD see their wealth vanish. The impact of Terras in mid-May caused an acute liquidity crisis and the industry is still trying to breathe from it. The token has been volatile since the launch of Terra 2.0, however, gaining momentum over the past week.
It makes one wonder whether the current skyrocketing performance of Terra Token is the start of a promising bull run. Or the possibility of a bear running away in disguise?
Where are Terra Tokens going?
Rajagopal Menon, Vice President of WazirX, pointed out that Terra Luna Classic has recently increased from 10,000 points per coin to 12,500 points per coin. In May, there was discussion about why Terra Luna Classic was falling, whether it would ever be replanted and whether it would ever be able to stabilize UST again. Then the debate slowly shifted to Terra Luna Classic vs Terra Luna 2.0, which is about to get better.
“Now, the spirit in the community has always been,” Menon said, “Let’s build Terra Luna Classic, let’s rebuild this community, “we’re crazy, we’re strong”.
WazirX VP said, “On August 26th, staking has been re-enabled on the Terra Luna Classic blockchain and Orion Money has officially downloaded version 22 to re-enable staking and include burn tax. “Investors are buying in anticipation of a rise in prices. From about 8,000 points per coin to about 10,000 points per coin, then to 12,500 points per coin today.”
Going forward, Seinberg said, “At the current juncture, Luna remains a volatile trade. The new Bern scheme will not significantly change the fundamentals of the coin. One should avoid such trades and enter only if their Have a proper exit strategy both during the pass up and down.”
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