A Terra Luna burn was one possible recovery strategy following Terra/Luna collapse, primarily spearheaded by the community.
Many Luna holders wanted to see a Terra Luna burn to reduce this supply and maybe boost its value after the meltdown caused the circulating supply to soar to over 6.5 trillion coins.
Holders are certain that the token will rise following numerous successful Luna burns, similar to how Shiba Inu’s significant burns were successful among the SHIB community.
However, Luna 2.0 was instead launched as part of the Terra recovery plan, indicating that a Luna burn plan was not considered as a means of saving Luna.
Most of the Luna community seems to favor a burn despite the Terra Luna vote passing a new chain. Throughout the voting period, #BurnLuna was trending on Twitter.
Luna Burn Address Report
CEO Do Kwon tweeted the Luna burn address on his Twitter, which appears to have spawned a burn movement as the Luna community continued to call for Luna burn.
Kwon, however, disagreed and said that doing so would be “actually burning money.”
The explorer claims that as of June 2nd, holders had burnt 1.05 billion Luna in 3760 transactions, representing just 0.016 percent of the total supply.
The amount has increased to around 1.18 Billion Luna Burned as of today. Of course, This is still too small to impact the price significantly.
Do Kwon Not Yet Out of Trouble, Korea To Share Data On Terra Crash With U.S.
Han Dong-hoon, the justice minister for South Korea, reportedly met with representatives from the American prosecutors. During the conference, cooperation in the investigation of financial crimes was discussed.
.@DOJCrimDiv AAG Polite & @JusticeATR AAG Kanter met w/ Minister of Justice Han Dong Hoon & others to thank South Korea for its outstanding cooperation & strengthen 🇺🇸 🇰🇷 collaboration on combating ransomware, criminal use of cryptocurrency & criminal antitrust matters. pic.twitter.com/w0bZfzAChV
— U.S. Department of Justice – International (@USDOJ_Intl) July 1, 2022
Both officials talked about improving their information-sharing collaboration. The Southern District of New York office and Seoul’s prosecutor’s office agreed to collaborate in the battle against financial crimes and fraud.
The agreement mentioned disclosing information about current crypto-related legal matters. According to the article, Korean authorities are looking into potential fraud allegations involving TerraUSD and Luna.
The $40 billion Terra ecosystem crash has attracted legal scrutiny from both countries.
The US SEC is already looking into Do Kwon’s marketing of its stablecoin TerraUST before its meltdown, though. It is investigating potential violations of laws governing investor protection. In addition, there are allegations of purported money laundering activities.
Final Thoughts and Price Action
With 6.5 trillion Luna Classics in circulation, Luna Classic is carrying on the previous Luna’s chain, so these burns will need to be substantial to have any notable effect; otherwise, they’ll not impact the price.
$LUNA is currently trading at $2.14 with a 24-hour trading volume of $65,436,963, while Terra Classic $LUNC is still struggling within the $0.000110 mark with a 24-hour trading volume of $151,105,580.
Surprisingly the market capitalization for Terra 2.0 (LUNA) is at $272 million, while the market cap for the original Terra Classic (LUNC) is a whopping $705 million. Despite most projects moving to the new ecosystem, it seems like the community is rallying behind the classic version of the coin.
TerraClassicUSD $USTC price today is currently at $0.049508 with a 24-hour trading volume of $54,062,455. TerraClassicUSD is down 11.97% in the last 24 hours after experiencing a massive pump from $0.00896 to the $0.0987 mark the previous week.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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