Possible reasons for LUNC turning bullish and is it a good timeLUNC has remained resilient despite dropping over 99.9% in 2022. Despite a tainted image, the coin maintains a sizeable supportive community and developers that could turn the tables in 2023.
LUNC has been volatile in the last six months; at its peak, it registered double-digit gains when most of the market remained silent in terms of performance.
Is it a good time to buy LUNC? In the following sections, we will explore its development to grasp its price outlook in 2023.
Proposal 11111 passes
Community proposal 11111 was passed by the community to repeal proposal 10983, which divided the community between burning LUNC and providing more utility. The proposal funded the community pool with 50% of the 0.2% burn tax instead of 10% for on-chain development.
By implementing proposal 10983, the community risked the world’s largest exchange Binance, repealing the burning of LUNC spot and margin trading fees.
Proposal 1111 passed with 82% of the cast votes; 2% voted against it, 12% voted no veto, and 4% voted to abstain.
The opposers hoped the proposal would help capital-intensive fund projects and help rebuild the Terra blockchain.
On December 1, Binance burned 6.39 billion LUNC tokens and sent Terra Classic price up 17%.
Regarding the proposed changes, Binance announced that they would burn 50% of the coin’s trading fees instead of 100%. The exchange will conduct its 7th batch burn on March 1, 2023, to allow ample time to implement these updates.
A joint L1 task force proposal is also taking shape; the proposal seeks to onboard core developers to complete the required upgrades and stabilize the L1 layer. If passed, it will begin acting in Q1 2023. After implementing the upgrades, the three-person dev team will transition to more innovative and long-term developments.
Terra Classic tainted past
The Terra Classic past continues to haunt its ecosystem. The Terra Luna crash wiped out $45 billion from the market in 72 hours.
In a Twitter thread on December 8, Do Kwon, the fugitive founder of Terraform Labs, said that Genesis trading had bought $1 billion UST from the Luna Foundation Guard (LFG). According to Kwon, Genesis purchased in the interest of Sam Bankman- Fried (SBF), who dumped the tokens on Curve Finance that caused the Terra Luna collapse. If the allegations hold water, the troubled Genesis trading books should contain the perpetrator’s details.
SBF denied these allegations.
On December 20, a South Korean court froze $92 million of assets owned by Kernel Lab executives. According to prosecutors, Kernel Lab was a close associate of Terra Luna, and its CEO held the most significant proceeds from Terra.
A South Korean media outlet recently reported that the fugitive Kwon had cashed out 9.64 BTC valued at $120,000 from the LFG after fleeing to Serbia. Kwon has denied that he is running away from the law and remains active on social media.
LUNC price prediction
The LUNC token price is currently trading at $0.0001589, down nearly 12% in the last 24 hours. The 24-hour low and high for LUNC are $0.0001582 and $0.0001839, respectively. The trading volume rose almost 10% over the previous 24 hours.
Through chart price analysis, we can deduce little price momentum from the MACD histogram; the MACD and signal lines are crisscrossing, so they could be more reliable. The 14- day Relative Strength Index (RSI) shows the Terra classic has plenty of room for upward/ downward movement.
Is it the right time to buy LUNC? LUNC has struggled since its crash in May. For the better part, it has been highly volatile, registering double-digit gains/ losses in 24 hours.
The community is optimistic, and as market sentiment recovers, we can expect its price to go up in 2023.
Also, read LUNC price prediction 2023 – 2031.
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