Binance, the largest cryptocurrency exchange in the world, recently conducted a substantial burn of over 4 billion Terra Classic (LUNC) tokens, reigniting hope for the token’s revival and the possibility of its price reaching $1.
The burn took place on April 1 and demonstrates Binance’s commitment to supporting the Terra Classic revival campaign. According to data from Terra Finder, the exchange destroyed exactly 4,175,855,418 LUNC tokens, which are worth over $585,000 at current prices.
This burn represents 50% of the trading fees accumulated by Binance on Terra Classic trades during the month of March, as promised by the exchange. Binance has committed to burning 50% of its LUNC trading fees each month to support the burn campaign and the revitalization plan.
Despite facing legal issues with U.S. authorities and the resignation of former CEO Changpeng “CZ” Zhao, Binance has remained true to its promise. The recent burn of 4 billion tokens follows a previous burn of 2.21 billion tokens carried out by the platform on March 1.
Notably, Binance has consistently adhered to its schedule, conducting the burns on time throughout the year. On January 1, the exchange burned 5.57 billion LUNC tokens, followed by a burn of 2.095 billion tokens on February 1. In total, Binance has now burned over 14 billion LUNC tokens, valued at $1.96 million.
Binance has established itself as the leading burner of Terra Classic tokens, with a total of 57.66 billion burns since the start of the campaign. The overall number of LUNC tokens burned by all entities has now reached 114 billion, with Binance accounting for 50% of all burns.
Despite the significant burn of 4 billion tokens on April 1, LUNC experienced a decline in line with the broader crypto market, dropping by as much as 5.59% in a major intraday slump. On April 2, Terra Classic witnessed an additional drop, resulting in an 8.65% collapse.
The feasibility of LUNC reaching $1 remains uncertain. The token has slipped below the $0.00015 price range, making a revival seem unlikely. However, the Terra Classic community continues to advocate for the potential rejuvenation of the ecosystem, with hopes that LUNC can rise to $1.
The token burn campaign plays a crucial role in this rejuvenation plan, as Terra Classic’s collapse in May 2022 was due to an unprecedented inflation surge. The community believes that a significant and sustained burn campaign could reduce the circulating supply of LUNC enough to increase its chances of reaching $1.
However, at present, LUNC still has a substantial circulating supply of 5.82 trillion tokens. Despite Binance’s significant contribution, it could take years for the campaign to deplete this supply. The community would need an extraordinary burn event to achieve its goal.
Currently, Terra Classic is trading at $0.0001401, showing a modest 1% increase this year, while the rest of the market experiences a significant uptrend during the bull run. To reach $1, LUNC would need to rally by 713,675% from its current position.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.