After a week of dull price action, LUNC soared by 25% in an hour and registered a hike of over 150% in trading volumes. The current price index also looked optimistic, as the token is trading at $0.0003, rising by 36% in 24 hours.
For the unversed, trading volume demonstrates the amount of intra-exchange trading and in this case, the surge has been attributed to increases in token sales across exchanges.
Anxious investors are still exercising caution since the Terra ecosystem collapse, which wiped out the market prices of TerraUSD [UST] and LUNA tokens.
traders continue treading carefully despite assurances from embattled Co-founder Do Kwon, that crypto exchanges and the community are working together to determine the best path for a sustainable price recovery.
Recently, the CEO of top crypto exchange Binance, Changpeng “CZ” Zhao, suggested a flat 1.2% trading fee on LUNC trades that may be burned to reduce the token’s total supply and enhance its price performance. Speaking about the initiative, CZ stated,
“We will implement an opt-in button [on the Binance exchange], for people to opt-in to pay a 1.2% tax for their LUNC trading.”
To ensure that early adopters “are not the only people paying an extra 1.2%,” the exchange would start taxing opt-in traders after receiving approval from 25% of LUNC investors.
LUNC Burning Proposal Caused Furore
Only if opt-in traders reach 50% of the total volume of LUNC trading on the exchange will a blanket trading fee of 1.2% be applied to all LUNC transactions.
The recommendation caused a rift in the LUNA community because while some people backed CZ’s implementation of the opt-in button, others saw it as market manipulation by a single organization.
CZ supported LUNC burning but called for a community vote, letting traders on the platform approve the proposal, saying, “We listen to and defend our users.”
The top exec said that he is aware that LUNC traders would prefer to transfer assets to other exchanges without the burn unless the modification is made across all exchanges and on-chain.
On the other hand, South Korean law enforcement is attempting to locate and detain Kwon for the Terra collapse.
Kwon and five other people were the subjects of an arrest warrant issued on September 14 by a court in Seoul, South Korea, for allegedly breaking the nation’s capital markets law.