Binance Eradicates 6.3 Billion LUNC Token, Pushing Price by 17%

• LUNC price went by 16%, while traders exchanged $250 million worth of LUNC.
• Market tracker reported that a whale sent 6.3 billion LUNC to a dead address.
• Previously, Binance burned 1,959,595.29 BNB, equivalent to $444,632,106.

While the global crypto market was in red, the price of Terra Luna Classic (LUNC) has seen an impulsive increment of over 16% over the previous 24 hours. In the same period, the coin also gained over 17% against the top giant cryptos in the market, Bitcoin (BTC) and Ethereum (ETH). 

Furthermore, crypto traders have bought and sold over $250 million worth of LUNC, putting its 24-hour volume up at 231%. These sudden favorable activities on the  LUNC coin may be due to a recent burn event. 

Yesterday, the AI-market tracking platform, LunaBurnTracker, reported that a wallet holding a significant amount of LUNC tokens sent over six billion units worth more than $1 million to a dead address. By implication, the coins become burned and lost forever.

The dedicated LUNC burn tracking website, LUNCPenguins.com, confirmed that the originating address was one of Binance’s cold addresses. Generally, the goal of token burning is to reduce the overall supply of a cryptocurrency, thus raising demand. In theory, the token price will rise if the demand is high and the token supply is low.

Despite Binance burning 6.3 billion LUNC tokens, the overall circulating supply of the coin remains above 5.9 trillion with a market cap of $1,113,900,323.

In July, Binance burned 1,959,595.29 BNB, equivalent to $444,632,106 at the time of the action. This aggressive coin burn was in line with its mandate to bring the total amount of Binance Coin in circulation to 100 million or half of its market cap.