Can The Terra Classic Burn Mechanism Impact The LUNC Price? Binance CEO Speaks Out

The post Can The Terra Classic Burn Mechanism Impact The LUNC Price? Binance CEO Speaks Out appeared first on Coinpedia Fintech News

The bears have regained their dominant position in the crypto space, causing Bitcoin to fall to a low of $19,000 yesterday. The entire market flipped, leading to crashes in several altcoins, including TerraClassic. 

Terra Luna Classic’s price has dropped from $0.000302 to $0.000263, recording a 13.61% fall in 12 hours. 

True Or False?: “Lower Fees Will Bring Greater Burn”

CEO changpeng zhao changpeng zhao founder and ceo at Binance Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.   He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets. EntrepreneurInvestorChief Executive Officer Followers : 0 View profile revealed last month that binance binance binance@miceneurol.com Centralised Exchange Followers : 0 View profile  would provide an opt-in system for the 1.2% fee burn per transaction, stressing the possibility that traders may leave the exchange if the burn were implemented for all trades.

He has issued yet another statement on this by claiming that the lower the fees, the larger the burn, and apparently, he has the figures to back it up.

According to Terra Rebels’ summary of an AMA held three days ago,  CZ predicted that decreased fees will lead to higher burns.

CZ explains, “We require low pricing to maximize LUNC fee revenue, and then we burn all revenue.” 

The increased fee does not mean more money; on the contrary, it usually reduces sales. Most LUNC holders feel increasing fees to 1.2% will lead Binance to burn more LUNC.

In addition, he declared, “… we spend all of our money. Trading costs for LUNC have no financial impact on us. We’re going to be burning it all.”

He also urged other exchanges to burn LUNC while stressing that he had no authority over them.

“I also urge other markets to implement this… But neither I nor the LUNC community has any say over any other transactions. We’ve done our part; now it’s up to everyone else.”