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Here’s Why Binance Will Suspend Terra Classic Transactions

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The largest cryptocurrency exchange in the world, Binance, had been in the news after briefly stopping withdrawals of the stablecoin USD Coin (USDC) in December 2022. Customers were withdrawing money from the exchange at a significant rate as worries about the exchange developed. The mounting worries reflected a loss of confidence in centralized exchanges as a result of numerous industry scandals in 2022.

However, Binance makes headlines yet again on similar lines, but on a lighter note. Top cryptocurrency exchange Binance has informed that on January 14 at 3:50 a.m. UTC, it would temporarily halt deposits and withdrawals for LUNC, USTC, and ANC via the Terra Classic (LUNC) network. This is as a result of the Terra Classic (LUNC) network upgrade caused by the most recent community suggestion.

It is planned for the Terra Classic (LUNC) network update to start at epoch 15,029, or about Jan. 14, 4:50 a.m. UTC, and last for roughly three hours. While temporary suspensions of deposits and withdrawals will apply, trading in LUNC, USTC, and ANC will not be impacted by the network update. The Terra Classic (LUNC) network’s withdrawal fees for LUNC, USTC, and ANC will be reviewed and, if necessary, adjusted by Binance, according to the company’s website. Once the improved network is judged reliable, deposits and withdrawals for the Terra Classic (LUNC) network will once again be accepted, however, users may not receive any more notice of this.

Binance Reduces LUNC Burns

By effectively banning LUNC reminting from burns, the proposal at the core of the Terra Classic network update attempts to deprecate the seigniorage reward policy. It also seeks to raise gas prices by five times (5x) to capitalization the community pool and increase validator or staking incentives. The proposal claims that over the past four weeks, LUNC’s on-chain burn rate has drastically lowered and will continue to do so as Binance cuts back on burns.

Binance Terra Classic LUNC

According to reports, Binance declared that it will begin to burn 50% of the LUNC spot and margin trading fees instead of 100% in response to recent developments where the LUNC burn is being reminted as a development fund. The LUNC community suggests a five-fold increase in gas taxes in light of the decrease in burn rate. “In terms of market value, Terra Classic’s gas prices are 18.42 times less expensive than Terra 2.0’s. Terra Classic gas prices will still be 3.68 times less expensive than Terra 2.0 even with a 5x increase “which supports the argument for raising the gas tax.

Terra’s Co-Founder Reportedly Sold 70% LUNA Before Price Hike

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Earlier this week, it was revealed that South Korean authorities had summoned former Terra executive Shin Hyun-seong, aka Daniel Shin, to an investigation into allegations that he had unfairly profited by selling LUNA [now LUNC] tokens.

Shin was accused of “holding pre-issued LUNA tokens without informing regular investors and then reportedly generating gains of 140 billion Korean won when he sold the tokens at a high point,” as a result. The same was worth approximately $105.52 million.

Terra Co-Founder Denies Illegitimate Profits Of $100M

Shin testified in front of the prosecution on November 17 that he was in possession of a sizable number of LUNA tokens at the time of the accident. Additionally, he denied selling tokens when LUNA was near its highs. A local media report claims,

“Shin is said to have made a statement to the prosecution to the effect that “more than 70% of the disposed Luna was traded before the price soared, and a significant amount was retained even at the time of the collapse.”

In a recent decision, the prosecution determined that the LUNA cryptocurrency qualifies as a financial investment security. As a result, it is “actively investigating” charging Shin with crimes under the Capital Markets Act, namely engaging in fraudulent illegal activities.

The former Terra executive is also charged with harming the business by promoting LUNA and the native stablecoin of the Terra ecosystem while using customer data and funds held by Chai Corporation, the organization where he currently holds the positions of CEO and Founder.

Nevertheless, a Chai representative recently informed Watcher Guru through email that the organisation has been running independently from Terra since Q1 2020. Shin has “cooperated” with the authorities in the continuing Terra probe and will “continue to do so,” according to the issued statement.

Shin has repeatedly said that he severed connections with Do Kwon and Terraform Labs in 2020. He then went on to found Chai Corporation, a provider of payment technology, where he is presently CEO and founder.

Conflicts Over Terra Token Treatment Due To Lack Of Regulations

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The collapse of Terra happened months ago. However, the aftereffect is still present in the crypto-hallways. verse’s The South Korean authorities are currently making every attempt to apprehend Do Kwon, the project’s originator.

Authorities in South Korea are having difficulty compiling a compelling case against the token’s founder Do Kwon. According to a Bloomberg story, disagreements about how to manage Terra tokens are emerging as a result of the lack of laws.

The prosecutor’s office recently asked that a Terraform Labs ecosystem participant be jailed. The court, however, turned down their motion. Despite what the prosecutors asserted, the judge concluded that it is still unclear if the defendant truly violated the South Korean Capital Markets Act.

The prosecution seems to mention the difficulties of the case while implying that it is working hard to prove the case. The authorities insist that further research is ongoing despite the lack of specific restrictions.

Terra Chief’s Whereabouts Still Unknown?

Do Kwon, the chief of Terra, is charged with breaking the Capital Markets Act, while he insists that he did nothing illegal. Kwon is the subject of an Interpol and local South Korean authorities’ arrest warrant. Kwon’s whereabouts are still a mystery.

Kwon, who continues to maintain his innocence, has received a red alert from Interpol. Furthermore, Kwon asserted that the red notice is not an arrest warrant in a recent interview with Laura Shin. When asked where he lived, Kwon also declined to give his address. Rumors suggest that he might be in Dubai, though.

Additional charges against Kwon have not yet been made public by the prosecution. The Terra disaster resulted in losses for a total of 280,000 persons, who claimed compensation. In a lawsuit brought by the lawyer for the victims, Kwon was charged with fraud and illegal fundraising.

On the other hand, today’s crypto markets experienced a small reprieve, and the Terra tokens also experienced a rise. At the time of writing, Luna Classic (LUNC) was priced at $0.00024929 with a daily hike of 8.0%. However, LUNA was priced at $2.47 with a rise of 4.2% over the last 24 hours.

Binance’s First LUNC Fees Burn Numbers Are Now Out

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After making the announcement, Binance burns its first “Luna Classic” burn of commissions from spot and margin trading pairings.

After Terra and its assets, LUNC and UST, catastrophically collapsed and Do Kwon resigned, the initiative evolved into a community-driven organization. A well-known crypto exchange called Binance appears to be supporting the project right now. First off, on September 26, the platform announced that it would burn all trading fees for LUNC spot and margin pairs.

The LUNC burns have received their first update, according to Binance. From 21-09-2022 to 1-Oct-2022, the exchange was able to burn the following amount of LUNC.

Binance reveals $1.86 million worth of LUNC burn

As stated in its release, Binance destroyed the LUNC it received from LUNC trading fees on its platform. Additionally, the exchange disclosed that it will offer weekly updates on its burning.

The exchange reported burning LUNC worth 1,863,213.47 in its most recent update. The exchange did note, however, that the burning process wouldn’t have an impact on the margin trading and LUNC sport trading costs.

According to information from the LUNC burner, 13,773,300,818.172 of its supply has been sent to dead wallets. This is 0.1998 % of the overall Luna Classic supply. However, 829,906.66 LUNC had been burnt over the past 24 hours. As a consequence, the tax has burned 52,413,910 LUNC.

One of the most promising blockchain ventures, Terra, abruptly collapsed in May, shocking everyone in the sector. Even though Do Kwon had received a “red notice” from Interpol, the token’s founder suddenly reappeared last month. LUNC is now trading for $0.00031607. It is 1.1% down in the last 24 hours.

A warrant has been issued for his arrest, and Interpol added Kwon’s name to its Red Notice list, pleading with local law enforcement to hold the Terra co-founder. Some have speculated that he may be in Singapore. Kwon’s current whereabouts are unclear as of the time of writing.

In other news, Binance, run by Changpeng “CZ” Zhao, has finally opened two offices in Brazil in an effort to penetrate that market, which is apparently home to more than 34.5 million cryptocurrency users. Now that Binance has offices in both So Paulo and Rio de Janeiro, the company will have more than 150 workers working across all of its Brazilian businesses.

LUNC takes a hike while Binance’s burn plan continues

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The initiative has developed as a community-driven organization following the stunning collapse of Terra and its assets LUNC and USTC as well as Do Kwon’s resignation. Binance, a well-known cryptocurrency exchange, appeared to be helping the initiative now. The platform said last week that it will burn all trading commissions for LUNC spot and margin pairings.

The exchange completed its initial collection of trading commissions on the pair mentioned above for weekend burning. Here is the number of tokens the project was able to burn, even though Binance has not yet released information about it.

The entire number of assets incinerated, according to LUNC Burner, was 7,806,059,852.146. Even though the amount is in billions, it only made up 0.113139% of the entire supply of the token. A total of 48,107,495 tokens were destroyed as a result of taxes.

Additionally, it is important to remember that every day, roughly 300 million LUNC are burned. But this is not just applicable to one organization. Although Binance has not yet made available its data on the subject, the community assumes that the figure would be significant given the recent increase in the asset’s trading volume.

At the time of publication, LUNC’s daily trading volume had increased by 61 percent to $1,023,706,007.44. On Binance, the cryptocurrency was able to outperform notable assets like Ethereum (ETH) in terms of daily volume, it should be mentioned.

As can be seen in the figure above, LUNC overtook Bitcoin to occupy the position of second in terms of daily volume.

Significant weekly gains for LUNC

The majority of market assets saw just modest advances during the past few days. However, over the past seven days, LUNC has increased by more than 70%. At the time of publication, the assets had a daily loss of 6.2% and were trading at $0.00032612.

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Although the most recent price increase is undoubtedly noteworthy for the network, the asset is still $119.18 off its all-time high. Positively, Terra Luna Classic had increased by 1864 percent from its low of $0.00001675 in May. Due to Binance’s burn strategy, the asset’s popularity and price are both anticipated to increase.

LUNC’s Trading Volume Explodes Over 150%; Here’s Why

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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.

Terra: The period of resurrection with LUNA’s surge

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Without a question, Terra was at the epicentre of the 2022 crypto market collapse. The project was one of the most prosperous before to the catastrophe, reaching a record high of $119.18 in April. But the soaring climb paved the ground for a legendary fall. The ensuing death spiral sent investors and users into a frenzy. Many people’s lives were completely destroyed, losing all they had saved up for. Since then, the team has created a new Terra Luna token (LUNA) and renamed the existing one Terra Luna Classic (LUNC).

After dramatic collapse earlier this year, the Terra blockchain’s cryptocurrency LUNA was regenerated. On Friday, the price of LUNA tripled, trading close to its all-time high achieved in early June when the token was issued.

According to data from cryptocurrency price tracker CoinGecko, the token’s price surged from less than $2 to roughly $7. At the time of publication, LUNA was trading at about $6, up more than 212% over the previous 24 hours on significantly greater trading activity.

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The native coin of the second iteration of the Terra blockchain, which was revived following the token’s collapse in May, which resulted in the loss of $60 billion in value, is called LUNA. Investigations of fraud against Terraform Labs, the company that developed the blockchain, and its founder Do Kwon followed the implosion. The Luna Classic (LUNC) currency and its stablecoin USTC are hosted on the old blockchain, now known as its Classic version.

Terra’s LUNC surprising surge

Risky investments like cryptocurrencies seem to be broadly rising on Friday in a relief rally as several economic indicators point to a slowing global economy and traders consider the possibility that the Federal Reserve may scale back rate hikes earlier than anticipated or even cut interest rates next year.

Traders became enthusiastic about a new burn program that would reduce the token’s inflated supply, which has caused LUNC to rise as well. Since then, the surge has slightly stagnated, as the coin has dropped 17% in the last day.

Crypto market observers are perplexed by LUNA’s erratic price movement because there hasn’t been any network-specific news or development that would spark excitement among retail traders.

Data from the social asset analytics platform for digital assets LunarCrush indicates a recent surge in social media mentions and engagements is indicative of a retail speculative frenzy.

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The new blockchain for the currency has so far had trouble drawing investors into its ecosystem. According to DeFi data tracker DeFiLlama, the network’s total value locked (TVL), a key metric in decentralised finance (DeFi) that gauges how much value a protocol can amass from investors, stood at a pitiful $51 million at press time. In contrast, the “old” Terra Classic blockchain’s TVL reached more than $20 billion in May before its collapse.

Terra’s LUNC soars high even through potential tax change

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Without a question, Terra was at the epicentre of the 2022 crypto market collapse. The project was one of the most prosperous before to the catastrophe, reaching a record high of $119.18 in April. But the soaring climb paved the ground for a legendary fall. The ensuing death spiral sent investors and users into a frenzy. Many people’s lives were completely destroyed, losing all they had saved up for.

Since then, the Terra team has created a new Terra Luna token (LUNA) and renamed the existing one Terra Luna Classic (LUNC).

Terra Luna Classic
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In the past few weeks, LUNC has experienced significant growth. The token has gained by 11.3% over the last 24 hours, according to CoinGecko. Additionally, LUNC has increased by 184.6% over the previous two weeks and by 100.2% over the past seven days.

The latest rally in Terra Classic was probably influenced by the v22 upgrade. The much-anticipated return of staking choices to the project has resulted from the improvement. Staking awards state that stakers can obtain payouts of up to 37.8%. The increased interest in LUNC may be due to its high yield.

However, the network is also undergoing some significant developments.

Tax parameter change on Terra research

There is a fresh suggestion for altering the tax parameter on Terra research. The idea was put forth by Edward Kim. The idea states that fees for on-chain actions, like as transferring money between wallets and dealing with smart contracts, will be assessed and burnt. With this parameter adjustment, taxes on off-chain activity cannot be enforced (like trading on CEXs).

Kim has also listed some benefits and drawbacks of the modified tax parameters. He claims that the tax would serve as evidence of on-chain, community-driven governance. Additionally, it would exert deflationary pressure on UST and LUNC alike. Kim also identifies a possible short-term stimulus for luring in fresh retail investors. Finally, CEXs won’t take a burn-off chain into account until it has been implemented.

Kim acknowledges that taxes have a negative impact on long-term economic activity and chain utility. Additionally, support for current dApps that don’t take taxes into account will end. Furthermore, there is no assurance that the chain will be burned off by the CEXs. Additionally, the tax may force any residual liquidity to CEXs without taxes, off-chain.

The idea is available for debate and will be presented after the negotiations are finished.

Korean firm Uprise Shorts LUNC; Loses $20 Million

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Uprise, a South Korean company platform for cryptocurrency investments, purportedly lost nearly 99 percent of its assets, or $20 million, when it was forced to liquidate shorting the Luna Classic (LUNC) coin.

The trading desk of Uprise Heybit employs a trading system using artificial intelligence (AI) that was created to lessen the risks involved with leveraged trading.

Seoul Economic Daily, a local news source, stated on Wednesday that Uprise’s AI, which it refers to as a “robo-advisor,” made a terrible error in May on LUNC as it plummeted sharply from $60 to pennies.

The system shorted LUNC but was liquidated along the road because of the token’s strange price spikes, resulting in $20 million in losses for the customers and $3 million for the system itself. Nearly all of Uprise’s assets were lost altogether.

High-net-worth people and businesses who stake their cryptocurrency for the return produced by AI trading on futures markets make up the majority of customers of the firm’s Heybit service. The Hashed cryptocurrency investment group, Kakao Ventures, as well as several banks and venture capital organizations, have all funded the company.

Uprise has not made a formal announcement about the losses

Despite suspending services, the company has not formally informed its clients of the losses. That was confirmed by an Uprise representative to Seoul Economic Daily.

“Due to great unexpected volatility in the market, there has been damage to customer assets. We plan to finalize the report on our virtual asset business soon.”

Uprise authorities are apparently working on a compensation scheme for its clients, in addition, to publicly informing its consumers so that it may continue to run.

The Terra issue and its following infection have caused large losses, according to Uprise, the most recent centralized crypto service provider to disclose them. It joins the list of companies that have had to take dramatic measures to attempt to stay viable, which also includes BlockFi, Celsius, and Voyager Digital.