LUNC, SHIB and other cryptocurrencies may never reach their target of 1 cent because token burning is slow. Despite the community’s efforts and massive token burns SHIB still has a large supply, while LUNC is struggling to increase its price. Terraform Labs (the creators of LUNC) recently announced it was selling assets in order to settle a $4.5 Billion settlement with SEC.
SHIB and Lunc Struggle With Slow Token Burns
According to a computer engineer, the goal for Shiba Inu (SHIB), Terra Luna Classic (LUNC), and Shiba Inu (SHIB), to reach a 1 cent price seems a little farfetched due to slow burn rates. Despite having burned more than one trillion LUNC coins, the coin has not seen a significant increase in value.
The community plays a crucial role in the long-term development of cryptocurrency. Groups are encouraging developers, crypto platform executives and other stakeholders to burn tokens and reduce circulating stock.
Shiba Inu’s public Layer-2 blockchain, Shibarium, burns cumulative transaction fees. This has an impact on SHIB’s price. Shibarium’s Layer-2 public blockchain by Shiba Inu burns transaction fees cumulatively, which affects SHIB price. In 2023 the Shiba Inu Community burned 76.4 billion SHIB Coins, which included 9.35 billion SHIB that were torched by Shibarium developers on January 10, 2024.
The remaining SHIB stock is substantial, at 589.2 billion, even though 50% of its initial supply was sent to Ethereum’s founder Vitalik Buterin. He then donated 10% towards India Coronavirus relief efforts.
In a post to X, the engineer said that he felt sorry for SHIB Army and that SHIB’s burning rate was behind LUNC. Binance has contributed monthly to burning 1.05 trillion tokens from the total 6.78 trillion supply. LUNC is still down more than 2% in price over the last year.
Shibarium L2 is expected to be released by 2024. SHIB owners are hoping for automatic burning via Shibarium L2. The new system of burning tokens could theoretically be able to burn billions per day, depending on the level of activity. The auto-burn system is currently live on Shiba’s Puppynet testnet. However, there is no certainty as to when the fixed amount SHIB tokens will be burnt with each on-chain transaction.
Mixed technical signals for the LUNC
At the time of publication, LUNC’s price had dropped over 2% in just one day.
TetherUS / LUNC 4h Chart
LUNC is now facing some resistance at around $0.00009254, and another obstacle at $0.00009412. The levels were previously used to cap upward movement and are likely to be key in determining the future momentum of bulls. Strong support can be seen between $0.00008091 & $0.00007632. These support levels are important because a breach could indicate a further pullback.
The 9 EMA is currently higher than the EMA 20, which indicates a bullish short-term trend. The gap between them is closing, which may indicate a possible consolidation, or a reversal, if the shorter EMA crosses under the longer one.
MACD values show a slow decline. The MACD line stays below the signal, resulting in a negative series of histograms. The divergence in the direction of bears indicates that there is a gradual increase in selling pressure. The MACD is close to zero, which suggests that a change in sentiment can quickly affect this outlook.
The Relative Strength Index fluctuates between neutral 50 and recent values that are slightly higher than 50 indicate modest bullish momentum. The RSI isn’t strong enough to indicate a trend. It may be more important for traders to look for more definitive action, either above 70 to indicate a bullish trend or below 30 to signal a bearish.
The LUNC chart for the 4-hour time frame is a mixed bag, showing both potential bullish and negative movements. LUNC is still a long way from its 1 cent dream.
Terraform Labs will sell assets as part of SEC settlement
Terraform Labs, a bankrupt crypto company that has filed for bankruptcy in the United States, is seeking to sell off four of its companies as part of an agreement with the Securities and Exchange Commission of the United States (SEC), which will result in the closing of the firm’s operations. Terraform revealed on July 9 that they are exploring the possibility of selling their portfolio tracking platform Pulsar Finance. They also announced plans to sell Station, a crypto wallet, Enterprise (a platform for managing decentralized autonomous organizations, or DAOs) without code, and Warp, whose smart contract automaton protocol is called.
Terraform purchased Pulsar Finance shortly after filing Chapter 11 bankruptcy for Delaware in Delaware, in December 2023. Enterprise was launched a year before, in November 2022. Terraform continues to work on its Warp Protocol and Station wallet despite its bankruptcy.
This sale will “maximise value” for Terraform’s creditors and stakeholders and forms part of a broader strategy of winding down its operations in accordance with settlement terms reached with the SEC. Terraform settled a $4.5billion settlement with SEC last month. Terraform agreed to pay nearly $3.6 billion as disgorgement and a civil penalty of $420m, along with approximately $467m in interest.
Do Kwon, the former co-founder of Terraform and its CEO, also agreed to pay $110 millions in disgorgement and $14.3 million prejudgment interests, as well as an $80-million civil penalty. This settlement effectively bars Kwon from working in the crypto-industry and ends the SEC lawsuit filed by the SEC against them on February 20, 2023 for securities fraud and violations of law.
Terraform developed the crypto currency Terra Luna Classic, which is now TerraClassicUSD. TerraUSD was an algorithmic stablecoin backed by the US Dollar. In May 2022, the stablecoin’s peg with dollars was lost.
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