LUNC soars 50% in 2 hours after Binance announces news of burnout.
The CEO and founder of cryptocurrency exchange Binance, Changpeng Zhao (CZ), announced on Monday (26), on his Twitter account, news about the burning of LUNC tokens that resulted in a sharp rise in the cryptocurrency’s price.
As CZ reported, the exchange – which arguably holds the highest liquidity of LUNC – decided to burn all trading commissions collected by the exchange on margin and spot pairs of LUNC against BUSD and USDT. CZ also reported that Binance itself will bear the costs of the LUNC burn.
“Instead, we have decided to start burning all trading fees collected on LUNC/BUSD and LUNC/USDT spot and margin trading pairs at Binance. The fees will be converted into LUNC and sent to the recording address. The burn is paid at our expense, not the users.”
According to Binance’s CEO, this was a way the exchange found to “be fair to all users.” According to CZ, LUNC’s trading experience and liquidity remain the same. “And Binance can still contribute to the decrease in LUNC supply, which the community wants,” he added.
Apparently, the community liked the news announced by CZ. First of all, because the tweets in response to CZ were positive:
“Great for LUNC fans,” wrote one user.
“Thank you sir. We really appreciate the reconsideration!” said another.
LUNC price soars 50%
In addition, the price of the LUNC token reacted well to the news. In a span of about two hours, the price went from $0.001077 to a local peak of $0.001671. That is, an appreciation of more than 55% in a short time.
At the time of writing, the token has retreated slightly to BRL 0.001588, but still accumulates a high of more than 32% in the last 24 hours, according to CoinGecko data. In addition to the price, the trading volume of the cryptocurrency has also jumped more than 150%.
Binance drops 1.2% fee
The decision announced by CZ on Monday is a change of direction from an announcement last Friday.
At the time, Binance said it would implement an opt-in button so that people could choose to pay a 1.2% tax for their LUNC trades.
So when opt-in accounts reached a 25% share of the total LUNC held at Binance, the exchange would begin charging 1.2% tax for all opt-in traders on LUNC trading.
Then, when the percentage reached 50%, Binance would roll out the 1.2% trading fee for all LUNC trading.
However, after criticism from the community, Binance changed its mind:
“After listening to feedback from the community and carefully considering the situation, Binance has decided to implement a Terra Classic (LUNC) burn mechanism in its trading fees.”
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