Terra Classic Community Celebrates Token Burns
The Terra Classic Community has recently celebrated a significant amount of LUNC and USTC token burns that took place in the past week. This news has the potential to positively impact the prices of these crypto tokens.
700 Million LUNC and 230,000 USTC Tokens Burned
AlexCryptoBull, a member of the Terra community, highlighted in a post that 700 million LUNC and 230,000 USTC tokens were burned last week. Data from LUNCMetrics confirms this development.
Token Burns as a Strategy for Revival
The Terra ecosystem has been increasing its token burns since the Terra LUNA crash to revive the LUNC and USTC tokens. To date, 94.31 billion LUNC and 1.50 billion USTC tokens have been burned since May 13, 2022.
Rejected Proposal for Token Burn
The community had to vote on a proposal to burn 800 million USTC tokens, but it was rejected due to legal concerns.
Voting Against Ethereum Compatibility
The Terra community voted against a proposal to explore making the Terra blockchain an Ethereum Virtual Machine (EVM) compatible platform. Some validators had concerns about the funding required for this project.
Terraform Labs’ Bankruptcy Filing Impacts Tokens
The bankruptcy filing by Terraform Labs, a company connected to the Terra ecosystem, has caused declines in LUNC and UST token prices. This could present further challenges for the community’s efforts to revive these tokens.
Potential Selloffs and Legal Troubles
There may be selloffs of LUNC and USTC tokens as part of Terraform Labs’ bankruptcy proceedings, leading to price declines. The Terra community is also dealing with legal issues surrounding the classification of LUNA and TerraUSD as unregistered securities.
Current Prices
At the time of writing, LUNC is trading at around $0.0001042 and USTC at $0.02536, both down over 5% in the last 24 hours.
Hot Take: Challenges and Opportunities for Terra Classic Community
The Terra Classic Community has experienced both positive and negative developments recently. The token burns have provided hope for the revival of LUNC and USTC tokens, potentially leading to price increases. However, the bankruptcy filing by Terraform Labs has created setbacks and uncertainty for the community. Legal troubles and potential selloffs could further impact token prices. The community will need to navigate these challenges while exploring new opportunities for growth and development.
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