LUNC Price Soars 9% After Delisting By BtcTurk, Here’s Why

The Terra Luna Classic (LUNC) price appreciated by 9% after being delisted by a Turkish cryptocurrency exchange BtcTurk.

The exchange delisted LUNC after a hack that saw about 434 billion tokens lost in the process. This event has led to many questions being asked, particularly on the fate of these tokens and their effects on the Terra Classic ecosystem.

BtcTurk Delists LUNC Amidst Hack Allegations

LUNC has been delisted by BtcTurk, a Turkish cryptocurrency exchange, after a major security breach. The hack affected 10 of the exchange’s hot wallets and led to the removal of 434 billion LUNC tokens. Even though specifics of the hack are still unknown to the public, BtcTurk explained to its users that most of the assets kept in the cold wallets were not impacted.

Nevertheless, BtcTurk assured that user assets are safe and will not be affected by the incident since it is financially sound. The exchange also suspended all cryptocurrency transactions as a result of the incident. Besides the LUNC tokens, about 1.96 billion Avalanche (AVAX) tokens were also lost in the hack.

After the alleged "hack," BtcTurk has decided to delist #LUNC from its CEX. Approximately 434 billion was removed during the course of the breach.

The question is, if these funds are part of the "hack," are they ever going to be unfrozen again? Are these now, in a way, burned?… pic.twitter.com/37r8iL5pFw

— HC Crypto (@HappyCatKripto) June 24, 2024

The fate of the stolen LUNC tokens is still unknown. In the past, such cases have resulted in the freezing of assets for an extended period. For instance, the funds stolen in the Terraport hack have remained unrecovered, or blacklisted, suggesting that they might as well have been “burned” and are therefore useless.

In this case, if the stolen LUNC tokens are frozen indefinitely, they could be deemed as being removed from the market, which in turn could be positive for the LUNC ecosystem through the decrease in supply. The Terra Classic community is currently looking for ways to burn tokens in inactive wallets associated with Terraform Labs (TFL) to reduce the token supply even more.

Binance’s Role and Terra Classic Community Actions

Binance has been quite engaged in the management of the aftermath of the BtcTurk hack. The exchange has already blocked over $5.3 million in stolen funds that were withdrawn through its platform. 

At the same time, the Terra Classic community is still working on decreasing the LUNC and USTC token circulation. Recently more than 6.5 billion LUNC tokens were burned which affected the total and circulating supply greatly.

This burn plan, as stated by TFL CEO Chris Amani, entails burning tokens in the TFL and LFG wallets, which has raised bullish expectations for USTC and LUNC prices.

LUNC and USTC Price Performance

After these events, the trading volume of LUNC increased by more than 63% within one day, which means that there were more purchase and sale transactions from traders and investors.

This heightened activity led to the 9% surge in LUNC prices to $0.00008153 at the time of writing. Similarly, the value of USTC has increased by more than 3.75% trading at $0.01771.

Subsequently, Binance remains the top burner of LUNC tokens, having burned 60 billion tokens through its monthly burn mechanism. This ongoing reduction in supply, coupled with the Terra Classic community’s burn initiatives, continues to positively influence LUNC’s market dynamics.

Read Also: LUNC News: Terra Classic And LUNA’s Initial Merger Effort Faces Major Roadblock

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