No, Terra Classic Isn’t Going to $1. Here’s Why

No, Terra Classic Isn’t Going to $1. Here’s Why

Talk of implementing a 1.2% burn tax on all transactions has caused LUNC to soar more than 171% over the past week. But the latest efforts to revive the failed project may just be an elaborate pump and dump.
Key Takeaways
Luna Classic is planning to implement a new 1.2% transaction tax burn mechanism.
The failed project’s native coin, LUNC, has risen 171% on the week.
However, new investors should temper their expectations of the coin eventually hitting a dollar.
The Terra Classic community is planning to start burning more LUNC—but traders should be careful they don’t get burned themselves.

Terra Classic’s Revival
Terra Classic is attempting to make another run at relevance, thanks to support from its community.

When the UST stablecoin collapsed in May, many thought there was no hope left for Terra. Do Kwon, Terraform Labs’ infamous CEO, had quickly moved to establish a new Terra blockchain, relegating his failure to the name “Luna Classic” and rebranding the new chain’s native coin under the LUNA ticker.

However, since Terra’s untimely collapse, efforts to revive the original blockchain have progressed slowly. In June, a proposal to start burning a portion of the Terra Classic transaction fees and increase validator rewards showed that there was still motivation to develop the chain despite it being abandoned by Terraform Labs. Another proposal to start burning 1.2% of all tokens transacted also passed a community vote, though details on how such an idea could be implemented were absent.

 

0.00 avg. rating (0% score) - 0 votes