Binance, the world’s leading cryptocurrency exchange, has announced that it has burned over 2 billion Terra Luna Classic (LUNC) tokens, as part of its 19th quarterly token burn event. The move, which aims to reduce the circulating supply and increase the value of LUNC, has sparked market enthusiasm and positive feedback from the Terra Luna Classic community.
Binance’s Token Burn Strategy: Creating Scarcity and Value
Binance’s token burn strategy is a mechanism that involves transferring a certain amount of LUNC tokens to a designated burn address, where they are permanently removed from circulation. The token burn process reduces the total and circulating supply of LUNC, creating scarcity and increasing its value.
Binance has been implementing this strategy since 2017, when it launched its initial coin offering (ICO) and issued 200 billion LUNC tokens. The exchange pledged to use 20% of its profits every quarter to buy back and burn LUNC tokens, until 100 billion tokens are destroyed. This would leave 100 billion LUNC tokens as the final supply.
Binance’s 19th Token Burn Event: A Milestone Achievement
On March 1, 2024, Binance executed its 19th token burn event, transferring 2.21 billion LUNC tokens to its burn address (terra1sk06e3dyexuq4shw77y3dsv480xv42mq73anxu). This was the largest token burn event in terms of the number of tokens burned, surpassing the previous record of 1.99 billion LUNC tokens burned in October 2023.
The 19th token burn event also marked a milestone achievement for Binance, as it brought the total number of LUNC tokens burned by the exchange to over 53 billion, representing more than 50% of the initial supply. The current circulating supply of LUNC tokens stands at 5.78 trillion, with a total supply of 6.80 trillion.
Binance’s Token Burn Impact: LUNC and USTC Price Rises
The announcement of Binance’s token burn event had a positive impact on the prices of both LUNC and USTC (Terra Luna Classic’s stablecoin). LUNC saw a 30% price increase over the past 24 hours, reaching a high of $0.000181. USTC also experienced a 12% price increase, hitting a peak of $0.0386.
The price rises of LUNC and USTC reflect the increased demand and confidence in the Terra Luna Classic project and its community. The project, which aims to create a decentralized and scalable platform for smart contracts and stablecoins, has been gaining traction and recognition in the cryptocurrency space, attracting investors, developers, and partners.
Binance’s Token Burn Outlook: More Growth and Innovation
Binance’s token burn strategy is not only a way to manage the supply and value of LUNC, but also a way to support the growth and innovation of the Terra Luna Classic project and its community. Binance has been a long-term partner and supporter of the project, providing liquidity, trading, and funding opportunities.
Binance also plans to continue its token burn strategy, until it reaches its target of 100 billion LUNC tokens burned. The exchange expects that this will create more scarcity and value for LUNC, as well as more utility and adoption for USTC and other stablecoins on the Terra Luna Classic platform.
Binance’s token burn strategy is a way to support the growth and innovation of the Terra Luna Classic project and its community.
