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LUNC Is Dangerously Close to Plunging to 0, Here's Why

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Wed, 21/09/2022 - 12:23
LUNC Is Dangerously Close to Plunging to 0, Here's Why
Cover image via stock.adobe.com

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Luna Classic holders were waiting for the upcoming 1.2% tax implementation, after which the network would take a step toward becoming deflationary or become a ghostchain and face the enormous selling pressure caused by the "sell-the-news" event.

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As we have mentioned previously in one of our articles, the LUNC management team decided to propose an implementation of the 1.2% tax that should increase the intrinsic value of the assets and help it to recover from the Luna catastrophe.

LUNC Chart
Source: TradingView

Unfortunately, most centralized exchanges stated that they are not going to accept the 1.2% burn tax, which negates the efforts the Luna team made to provide more speculative value to the assets.

Additionally, after the Ethereum Merge went live, the market faced a large spike in selling pressure. LUNC, however, showed an exceptional performance which, according to Light, was a "marketing strategy" stunt to attract investors who seek nothing but short-term profit and speculation.

How did it end up?

The tax was implemented a few hours ago, which, as expected, did not lead to any major spike in the usage of the network, price performance or anything that would make the proposal somehow significant.

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SHIB Burn Pace Spikes 1,502%, Here's How Much SHIB Was Removed

At press time, LUNC is burning around $3,000 worth of token, the market capitalization of the token is at approximately $2 billion. As expected, investors simply dropped support for the token, causing a short-term price drop.

The most recent announcement issued by the South Korean prosecutor's office about the co-founder of Terra Labs being on the run has also reignited the downtrend on the asset and lost an additional 11% from its value in the last two days.

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