The CEO and founder of cryptocurrency exchange Binance, Changpeng Zhao (CZ), announced this Monday (26), on his Twitter account, news about the burning of LUNC tokens that resulted in a significant increase in the price of the cryptocurrency. As reported by CZ, the exchange – which possibly holds the most liquidity of LUNC – has decided to burn all trading commissions collected by the exchange on LUNC margin and spot pairs against BUSD and USDT. CZ also reported that Binance itself will bear the costs of burning LUNC.
Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance. Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’. — CZ 🔶 Binance (@cz_binance) September 26, 2022
“Instead, we decided to start burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance. Rates will be converted to LUNC and sent to the recording address. The burning 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, 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 skyrockets 50%
Furthermore, the price of the LUNC token reacted well to the news. In an interval of about two hours, the price went from BRL 0.001077 to a local peak of BRL 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 is still up more than 32% in the last 24 hours, according to data from CoinGecko. In addition to the price, the cryptocurrency’s trading volume also jumped more than 150%.
LUNC token price chart for the last 24 hours. Source: CoinGecko
Binance drops 1.2% fee
The decision announced by CZ this 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 would choose to pay a 1.2% tax on their LUNC trades. Thus, when opt-in accounts reach a 25% share of the total LUNC held on Binance, the exchange would start charging 1.2% tax to all opt-in traders in LUNC trading. Then, when the percentage reaches 50%, Binance would roll out the 1.2% trading fee for all LUNC trades. However, after criticism from the community, Binance changed its mind: “After listening to community feedback and carefully considering the situation, Binance decided to implement a Terra Classic Burn Mechanism (LUNC) in its trading fees.” Also Read: Vitalik Lists 3 Reasons Why DAOs Are Better Than Corporations Also Read: NFT SudoAMM Platform Surpasses BRL 250 Million In Volume Months After Launch Also Read: Bitcoin Drops To Next Resistance Level, ETH Reaches 2.6% . How is the cryptocurrency market this Monday (26)?