Changpeng Zhao (CZ) won the hearts of Terra investors after Binance announced the burn for the LUNC process price. However, according to experts, LUNC’s social explosion could be a sign of an impending dump.
LUNC investors initially reacted to Binance and CZ
Binance’s CEO, CZ, has announced that Binance will burn trading prices on LUNC spot and margin trading pairs. Subsequently, the LUNC community thanked CZ. Binance is the world’s largest exchange with a 24-hour trading volume. It was criticized earlier this month for not agreeing to fully support the 1.2% board cuts. A number of members of the Terra community voiced their complaints on Twitter at the time:
We are extremely disappointed that CZ did not keep his word. Applying a 1.2% committee on withdrawals and deposits only deters people from Binance. The LUNC burn movement is not implementing the spot + margin trade AKA in the form society wants.
Binance quickly dismissed critics, saying that a 1.2% board burn was introduced on all LUNC on-chain processes (deposit and withdrawal), as suggested in the community proposal. However, Binance has assured aggrieved LUNC investors that it will reconsider its decision soon.
Investors make U-turn for Binance CEO
In an interesting form, Binance has implemented the LUNC burn system on all LUNC trading prices. Following Binance’s decision, a Twitter user drew CZ’s attention to the criticism of the exchange for not implementing tax burning on all LUNC services on the platform. In this direction, “I hope those who made bad comments about you are now ashamed. We have always believed in you. We trusted you. We love you CZ,” she shared.
Responding to the comment, CZ replied, “I feel like there won’t be too many apologies, lol…” Since the founder of Binance announced the LUNC burn, several LUNC investors have expressed gratitude and apologies to CZ and the exchange.
I myself was never for the hate towards @binance and especially you CZ. On behalf of the #LUNCcommunity Id like to directly say We are not too big to admit taking the wrong stance, with that being said we apologize and we are thankful!!! 💯🦾
— Kno Idea 🏄🏾♂️🌊 (@producerknoidea) September 26, 2022
Terra Rebels, for example, said that CZ is a real president.
This is leadership… even decentralised chains need leaders. https://t.co/b4l2CZHzBM
— TerraRebel (@RexYellerBelly) September 26, 2022
LUNC holders continue to reflect on FatMan
In the midst of this, the notorious informant FatMan, nicknamed Terra, continued to ‘frustrate’ LUNC investors. He accused FatMan’s LUNC holders of bullying exchanges to impose a 1.2% tax on his platform.
LUNC has voted in the suicidal on-chain burn tax, which is their prerogative. But they're now running around demanding that exchanges forcibly steal a cut out of traders' transactions and throw it into the burn wallet to pump their token price. Selfish, silly and anti-blockchain. https://t.co/GbLh3ugkJL
— FatMan (@FatManTerra) September 16, 2022
Binance has announced the implementation of a burn mechanism on all LUNC spot and margin trading prices. After that, FatMan once again addressed the LUNC enthusiasts:
Deciding to burn millions of dollars out of his own pocket due to the unreasonable demands of an angry Twitter mob, Binance is a true example of the raw, unbridled power of public relations and social media.
Binance deciding to burn millions of dollars out of their own pocket because of the unreasonable demands of an angry Twitter mob is a true exemplar of the raw, unbridled power that PR & social media hold
— FatMan (@FatManTerra) September 26, 2022
FatMan’s tweet angered LUNC investors, who responded to him for hours.
Is LUNC’s social explosion a harbinger of the upcoming dump?
According to LunarCrush, a social media analytics portal that tracks activity around cryptocurrencies, social engagement and daily LUNC words set a three-month record. LUNC reached 9,550 mentions per day on social media. In this context, a total of 71,094 in the last 90 days. At the same time, LUNC’s social engagement reached 89.34 million. According to the source, social engagement increased by 86.33%. Additionally, LUNC’s social media dominance increased by 47.23%.
The #terraclassic community is at it again today🚀
Let's take a look at today's social activity 🔥. $LUNC social mentions measured hourly hit 9.55K, the highest point in the last 90 days.
Social dominance +47.23%
Social engagements +86.33%Insights: https://t.co/R01sSRHYOM pic.twitter.com/694VLZXkhK
— LunarCrush (@LunarCrush) September 26, 2022
While the explosive increase in LUNC stakes seems harmonious, according to experts, it is possible that such price fluctuations (50% or more per day) could turn into a dump following the latest news about the project. Because there are many uninformed investors willing to enter the project as soon as they see LUNC’s current price increases. Experts say that speculators who have been pushing the price of the token since August can easily use them as exit liquidity.
LUNC’s burst of activity on social networks of this kind is of course due to recent events around the notorious project. That’s why LUNC quotes, which have been showing unusual volatility lately, have risen and fallen at double-digit rates in recent weeks. The latest one-day news was that Interpol issued a red notice for the arrest and detention of the project’s founder, Do Kwon, in nearly 200 countries around the world.
Then, a few hours later, it was revealed that Binance, which has one trillion LUNC liquidity, will provide a long-awaited token burning system through trading committees convened by the exchange.
