Terra Luna Classic (LUNC) Explodes Over 82% After Binance Implements New Fee Burn System

 Terra Classic (LUNC), a remnant of a former top 5 crypto project, is rallying hard with the news that Binance will introduce a fee mechanism to support the LUNC community proposal.

Terra Classic is a rebranded version of Terra (LUNA), a project that wiped out more than $40 billion in market cap after essentially going to zero when its stablecoin UST lost its peg.

Binance CEO Changpeng Zhao said the world's largest exchange by volume will burn all LUNC fees from its Binance USD (BUSD) and Tether (USDT) trading pairs.

“We have decided to start burning all trading fees collected on spot and margin trading pairs LUNC/BUSD and LUNC/USDT on Binance.

Charges will be converted to LUNC and then sent to the burn address. We pay the burning fee at our expense, not at the expense of the users.

That way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the drop in LUNC supply, which is what the community wants.”

Originally, Zhao said he wanted to add a login button to the mechanism, but changed his mind after receiving feedback from the community.

Following the announcement, LUNC rose from $0.000181 to $0.00033 within hours, a gain of just over 82%. LUNC also has a significant 24-hour trading volume of $2.3 billion, significantly more than other top crypto assets such as Solana (SOL) or Binance Coin (BNB).

However, LUNC is essentially down 100% from its all-time high of $119 and its founder Do Kwon is currently wanted by Interpol after South Korean authorities requested that he be put on a red alert for his role in the collapse of the Terra ecosystem. Interpol has since complied with the warrant and is now seeking his arrest.

Terraform Labs, the development company behind Terra, is also being hit with a lawsuit from users who say the project operated like a Ponzi scheme, specifically with regards to its UST stablecoin.

A spokesperson for Terraform Labs released a statement to The Daily Hodl calling the claims unsubstantiated.

"Terraform Labs will not comment on pending litigation other than to say that it believes the claims are without merit and intends to fully defend them."