Terra Ecosystem Strengthens as Binance Continues to Burn LUNC Tokens

The Terra ecosystem was able to strengthen as both LUNC and USTC printed 24-hour gains.

The Terra ecosystem was able to strengthen along with the rest of the cryptocurrency market over the past 24 hours. At the forefront of this positive change in momentum for the ecosystem is the latest Terra Classic (LUNC) token burn by Binance. This token burn is part of the exchange platform’s commitment to reduce the inflated LUNC supply by executing monthly token burns.

Meanwhile, another exchange platform, OPNX, also made headlines in the Terra ecosystem over the past few days after its team announced that they will be launching a meme coin named FatManTerra Justice Tokens. This meme cryptocurrency will then be airdropped to Terra (LUNA) and LUNC holders as a form of compensation. The token’s name is intended to be a dig at the Terra ecosystem whistleblower, FatMan, who allegedly spread false information about the project which led to the collapse of the entire ecosystem.

Terra Ecosystem Performance Overview

The total market capitalization of the Terra ecosystem rose 2.82% over the past 24 hours, according to CoinMarketCap. As a result, the total stood at $643,548,184 at press time. In addition to the increased market cap, the Terra ecosystem also recorded an increase of more than 75% in its daily trading volume. Subsequently, the 24-hour volume for the ecosystem stood at more than $51 million.

Read also: Two New Proposals Add to Terra Community Valiant Revival Effort

During this time, both LUNC and TerraClassicUSD (USTC) were able to achieve gains. LUNC’s price stood at $0.00008054 after it increased 1.52% over the past 24 hours. Meanwhile, USTC continued to trade below $1 at $0.01541. Nevertheless, the once stable coin printed a daily gain of 7.67%.

The only cryptocurrency in the top 5 largest projects in the Terra ecosystem that suffered a 24-hour loss was TerraKRW (KRT). CoinMarketCap indicated that the altcoin was changing hands at $0.000493 after its price dropped 0.32% throughout the past day of trading.

Anchor Protocol (ANC) and Mirror Protocol (MIR) followed the same trend as that of LUNC and USTC over the past 24 hours, as both altcoins saw their prices increase in this period. As a result, ANC’s price was at $0.00942 after an impressive 5.63% increase. Similarly, MIR’s price stood at $0.03089 following its gain of 3.10%.

Binance Continues its Support for the Terra Ecosystem

The Terra ecosystem may continue to flourish in the next few days given the fact that Binance, the world's largest cryptocurrency exchange by trading volume, has conducted another significant burn of Terra Classic's native token, LUNC. This move not only reaffirms Binance's support for the Terra Classic ecosystem but also has substantial implications for the token's total supply and overall value in the market.

The Latest LUNC Burn

Yesterday, Binance executed its batch 12 LUNC burn, eliminating over 1.41 billion LUNC from circulation permanently in a single transaction. This reduction effectively brought Terra Classic's total supply below 6.84T, signaling a significant decrease in the availability of LUNC tokens.

Details from On-Chain Data

On-chain data revealed that precisely 1,412,760,563 LUNC was burned by Binance yesterday at 1:36 PM UTC. This amount represents 50% of the trading fees the exchange collected from LUNC spot and margin trading pairs during the period between 30 June 2023 and 30 July 2023. The total trading fees generated during this timeframe were calculated to be equivalent to 121,850.96 USDT.

Monthly LUNC Burns by Binance

Binance's latest LUNC burn marked a decrease compared to previous burns. In the previous burn campaign, Binance incinerated 2.6 billion LUNC tokens, and in June, it burned approximately 1.044 billion LUNC. Nevertheless, Binance has established itself as the top LUNC burn contributor, with substantial monthly burns taking place.

Binance's Impact on LUNC's Total Supply

Since May of last year, Binance has burned a staggering total of 71.60 billion LUNC tokens. Out of this massive volume, Binance accounts for an impressive 51.7%. Specifically, the exchange has destroyed exactly 36,997,501,286 LUNC. It is worth noting that Binance temporarily suspended LUNC burning between December 2022 and February this year, during which the Terra Classic community decided to remint some of the burned LUNC tokens.

Resuming LUNC Burns

Binance resumed its LUNC burns in March this year, during which it burned 8.8 billion tokens. Since then, the exchange's total burns have surpassed 16.5 billion LUNC tokens. This consistent burning of tokens has been met with optimism by the community, who hope that it will have a positive impact on the price of LUNC.

USTC Repegging and the Cryptocurrency Market

In recent news, the USTC Quant Team initiated a direct line of communication with Binance regarding the repegging of the supposed stablecoin, USTC. Such developments have further fueled speculations about the potential effects on the market and the price of LUNC.

Binance was not the only exchange platform to make news in the Terra community over the past few days. The cryptocurrency exchange OPNX has recently made waves as well by launching an airdrop campaign specifically targeting owners of Terra (LUNA) and Terra Classic (LUNC).

Founded by Su Zhu, known for his involvement with Three Arrows Capital, OPNX seeks to distribute "FatManTerra Justice Tokens" as memecoins to eligible holders. However, this initiative has been met with criticism and legal concerns, as the exchange's founders have reportedly failed to respond to a subpoena in the United States, raising questions about their transparency and accountability.

The Genesis of Controversy

The genesis of the controversy surrounding OPNX can be traced back to Twitter messages allegedly sent by various usernames attributed to an analyst named FatMan Terra. These messages were said to contain false information that contributed to the collapse of the Terra ecosystem, according to supporters of Terra. The authenticity of these claims remains disputed, but they have nevertheless had a significant impact on the reputation of both Terra and FatMan Terra.

Addressing Alleged Damage

In response to the uproar caused by the Twitter messages, OPNX devised a unique approach to address the alleged damage done to the Terra ecosystem. They created a meme coin called "FatManTerra Justice Tokens" and decided to distribute these tokens to LUNA and LUNC holders.

The distribution method, however, remains undisclosed. While the gesture might seem noble on the surface, there are lingering questions about the true intentions and efficacy of this airdrop.

No Intrinsic Value

It is crucial to note that despite the intriguing name, the "FatManTerra Justice Tokens" hold no intrinsic value. These tokens are classified as memecoins, a type of cryptocurrency that is often created as a joke or meme and lacks any practical utility. This raises doubts about the effectiveness of the airdrop campaign in truly compensating or repairing any alleged damage caused to the Terra ecosystem.

Expanding the Airdrop Initiative

OPNX also went beyond Terra holders and included users of Rollbit, a platform where FatMan Terra allegedly claimed to have upcoming confidential information. The decision to extend the airdrop initiative to Rollbit users comes after the founder of the platform revealed the messages shared under different usernames by FatMan Terra. This move has stirred up more controversy, with critics questioning the motives behind OPNX's decision to involve a wider audience.

Whistleblower Accusations

In the midst of the airdrop announcement on Twitter, FatMan, the supposed Terra ecosystem whistleblower, lashed out at OPNX, accusing them of perpetrating a new fraudulent scheme under his name. This accusation adds further fuel to the existing controversies surrounding OPNX and casts a shadow of doubt over the exchange's intentions and integrity.

Community Concerns and Eager Anticipation

As the distribution of the "FatManTerra Justice Tokens" draws near, the cryptocurrency community is eagerly awaiting further details regarding OPNX's plans and the potential implications for Terra ecosystem supporters. The lack of transparency and legal concerns surrounding OPNX's founders has left many questioning the legitimacy of this airdrop campaign and whether it will genuinely address the alleged harm caused to the Terra ecosystem.