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Here’s What Is Causing Severe Drop in Terra Luna Classic Price
LUNC News: In a dynamic turn of events, Terra Luna Classic (LUNC) price extended its weekly loss to over 10% on Tuesday, sparking concerns among investors globally. This bearish movement comes against the backdrop of a stockpile of statistics, including wallets being drained and funds being shifted to exchanges, alongside broader market trends. Here’s a brief collection of potential factors driving the current slumping action and why traders should remain cautious.
LUNC News: Reasons Driving Dip in Terra Luna Classic Price
In an official X post shared by the Terra Luna Classic community, it was revealed that a substantial amount of LUNC funds was being emptied from wallets and being shifted to exchanges. The transfers from individual wallets to exchange hot wallets, such as Binance, Bitkub, Kraken, and Cryptex, have been remarkably high. This has caused market-wide investors to speculate bearishly as the exchange supply for the asset increases.
The recent influx of transfers, each exceeding 1 billion tokens, into Cryptex’s wallet, followed by transfers to other exchanges, was attributed to factors such as:
Market Turbulence Due To DeepSeek’s Emergence
The recent rise of open-source Chinese AI startup DeepSeek has significantly influenced worldwide tech markets. Major stocks such as Nvidia, Microsoft, Meta, and Alphabet, among others, tanked substantially.
Meanwhile, this bearish trend led to a broader market selloff, with even the crypto sector taking the heat. LUNC price tanked alongside renowned assets such as BTC, ETH, and others in recent days as investors took a cautious stand.
Consolidation Amid Shift Of Funds
Meanwhile, the Terra Luna Classic community revealed that the pattern of large transfers from multiple wallets to exchanges has caused a consolidation. This strategic mover, although aimed to raise liquidity, has also risen staking. In turn, the sentiment over price remains uncertain as the market could see unstaking and dumping ahead, emerging as another bearish LUNC news.
Impact Of Terra Luna Classic Burn Tax & Infrastructure
LUNC transactions are always subject to a burn tax, thereby pushing individuals to send smaller amounts in a go. This mover comes as users test the speed and success of transactions before committing larger amounts. As a result, this factor further aligns with the surge of dump transactions to exchanges.
“Large transactions in a single transfer can cause delays or higher processing times on the Terra Luna Classic network due to its infrastructure,” the community added. In response, investors may even look to shift funds to a faster-performing blockchain with a lower burn tax.
How Is LUNC Price Delivering?
At the time of reporting, LUNC price witnessed a 13% drop weekly and is currently sitting at $0.00007618. Further, the monthly chart underscored a crash of 32%.
However, the coin’s 24-hour chart showed a 3% gain in tandem with the broader crypto market trend today. Nevertheless, market watchers continue to monitor the token as its market dynamics shift dramatically amid broader developments, emerging as alarming LUNC news.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
has Binance founder Changpeng Zhao (CZ) is reimagining the concept of token issuance in a new proposal. CZ theorizes a smart contract-controlled unlock for tokens designed to prevent flooding the market with new tokens.
Binance Founder Explores New Standards For Tokenomics
Under CZ’s proposal, only 10% of tokens will be unlocked for sale with the remaining 90% remaining untouched. The Binance founder says the proceeds for the 10% will be deployed for development costs, marketing, salaries, and community building.
A key feature of his “crazy idea” involves strict conditions to be fulfilled before future token unlocks. He argues that issuers must wait for six months after the previous unlock before proceeding with a new unlock.
However, the token price must have doubled its previous unlock price for over 30 consecutive days before the next unlock. According to the Binance founder, token issuers will be allowed to unlock a maximum of 5% of the total holdings each time.
While the maximum unlock is pegged at 5%, the project team has the right to reduce and delay the unlock sizes. Unlocks have the potential to send token prices crashing, accentuated by the incoming $2 billion SOL unlock and tumbling asset price.
“If they don’t want to sell more, they don’t have to,” said CZ. “But the maximum they can sell each time is 5%, and then they have to wait for at least another 6 months AND the price to double again.”
Incentivizing Long-Term Builds And Preventing Token Rug Pulls
Right off the bat, the upsides to CZ’s proposal are clear as a strict vesting schedule prevents early dumping. Improper tokenomics standards have fuelled a wave of exit scams in the cryptoverse with the Libra token crash leaving a sour taste in the mouth of investors.
CZ’s idea involves locking tokens with a smart contract and an independent third party controlling the keys.
“This avoids new tokens flooding the market when prices are low,” said the Binance founder. “It also gives the project team incentives to build for the long term.”
Zhao has previously expressed his displeasure over sharp practices in the space, pledging support for memecoin victims. CZ clarified that he has no plans to launch a new token and that the theory is open for discussion.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Solana cofounder Anatoly Yakovenko says Bitcoin (BTC) has zero intrinsic value compared to other assets. His tirade against the largest cryptocurrency by market capitalization has triggered polarizing reactions in the ecosystem with a cross section taking swipes at Solana.
Bitcoin Has No Value And Is Not An Investment, Says Solana Cofounder
Solana cofounder Anatoly Yakovenko has cast aspersions on Bitcoin’s viability as an investment option, saying the asset has no value. Yakovenko made the assertions on a post on X, claiming that the asset is not an investment but akin to a coin flip.
He argues that the best-case scenario for Bitcoin is as “insurance” against the collapse of a global superpower. The Solana co-founder pegged the odds of such a collapse at 1%, adding that Bitcoin may hold up well in the event of a superpower implosion.
“It’s worth it for me to spend 1% of my wealth on some asset that might not go to zero in that environment,” said Yakovenko. “It’s not an investment, its a cost and there is no guarantee that it will work.”
Yakovenko adds that a BTC price of $100K or $10K does not affect its ability to withstand a superpower collapse.
“If it works, it has very little to do with technology outside of the initial innovation that happened 15 years ago,” said Yakovenko.
Bitcoin Maxis Disagree With Yakovenko’s Claims
Yakovenko’s comments have triggered a wave of reactions from the cryptoverse with the bulk disagreeing with his claim. Angel investor Ashkay BD diverged from Yakovenko, stating that Bitcoin offers immense value flowing from its ability to protect users from counterparty risk.
He adds that without BTC, individuals will be forced to transact with failing banks and governments with currency debasements and capital controls.
Others say despite incoming CME Group’s SOL futures, Solana is overvalued since it is still finding its feet in the world. Critics opine that if the Solana cofounder sees Bitcoin as good for doomsday events, then Solana is only for memecoins.
Despite a previous spike of memecoin activity in Solana, ecosystem activity is waning with PumpFun halting token creation amid market volatility.
President of the Solana Foundation Lily Liu appeared to distance herself from Yakovenko’s claim. Liu considers herself to be a Bitcoiner while advocating against ecosystem tribalism in a lengthy post.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The US federal court’s recent dismissal of an SEC lawsuit against Hex founder Richard Heart has sparked optimism about a potential resolution in the XRP lawsuit. This development, combined with the SEC’s growing trend of dismissing crypto lawsuits, has fueled anticipation of an imminent resolution in the Ripple case. XRP lawyer John Deaton is advocating for a swift resolution to the Ripple vs SEC case, directly addressing key SEC officials and the government’s cryptocurrency team.
John Deaton Urges SEC Officials for XRP Lawsuit Settlement
In response to the US district court’s recent decision to drop fraud charges against Hex founder Richard Heart, pro-XRP advocate John Deaton urges the government for a swift XRP lawsuit resolution.
The XRP lawyer urged key SEC officials Hester Peirce and Mark Udeya as well as crypto czar David Sacks and crypto advisor Bo Hines for the Ripple case dismissal. In an X post, Deaton wrote, “As Amici counsel and on behalf of 75K XRP holders, Hester Peirce, David Sacks, Bo Hines, Mark Udeya, when Ripple?”
US Court Drops SEC Lawsuit Against Hex Founder
Notably, John Deaton’s X post comes on the heels of the US federal court’s dismissal of the lawsuit against the Hex founder, imposed by the Securities and Exchange Commission. The SEC alleged that Richard Heart accumulated over $1 billion through unregistered cryptocurrency offerings and $12.1 million through defrauding investors.
However, the court countered that the regulators failed to demonstrate US jurisdiction over Heart’s crypto activities. In a February 28 court ruling, Judge Carol Bagley Amon stated,
The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States…To the extent the Complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States.
The Hex founder’s lawsuit update and John Deaton’s statement come following the SEC’s dismissal of multiple crypto lawsuits involving Coinbase, Robinhood, Uniswap, etc. In a contrasting view, former SEC official John Reed Stark perceives these developments as a warning sign, suggesting that they may ultimately lead to the agency’s destruction.
Following the court win, the crypto tokens like PulseChain (PLS), PulseX (PLSX) and HEX (HEX), which the SEC alleged were securities, surged significantly. Richard Heart celebrated the victory, coupled with the tokens’ rally. In an X post, he stated, “HEX has operated flawlessly for over 5 years. Today’s decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies.”
John Deaton’s Long Battle for Ripple’s Victory
Significantly, John Deaton began his crusade against the SEC in response to the agency’s allegations against Ripple, taking on a role as an advocate for XRP holders. He began his journey as an amicus counsel representing 75k XRP holders, filing a writ of mandamus to question the SEC’s jurisdiction and motives. Over the four-year lawsuit, he continued to support Ripple, arguing that the SEC’s claims were unfounded.
Recently, John Deaton reflected on Ripple’s significant transformations over the past few years, especially since 2020, when the SEC filed the lawsuit. He credits Ripple’s successful court battles and Donald Trump’s re-election as key factors contributing to the optimistic developments surrounding XRP ETFs.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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