Terra News
- LUNA witnessed a 100% jump over the weekend.
- The coin starts the week with a 30+% gain in the last 24 hours.
- Some of the reasons for LUNA pumping are LUNA burning, the hard fork proposal, and the difficulty shorting LUNA.
Over the weekend, the volatile Terra (LUNA) crypto witnessed a 100% pump. This follows the aftermath of its price dropping 100% early this month. The tragic drop saw its stablecoin TerraUSD (UST) de-peg from the dollar, wiping off billions of dollars of investors’ wealth. This also attracted a fair level of regulatory scrutiny around stablecoins.
At the time of writing, Terra (LUNA) is up around 30.69%, according to data from CoinMarketCap. Let’s look at some of the possible reasons why LUNA is pumping.
The first possible reason why LUNA is pumping may have something to do with project founder Do Kwon’s proposal to burn the Terra Luna token and cap the supply at 1 billion. This process involves sending LUNA to an off-chain “burn” wallet address that can only be used to receive crypto and no other purpose, in turn reducing the total supply.
Another possible reason for LUNA pumping recently is that it is really difficult for traders to short LUNA since margin trading for LUNA and UST pairs has been removed from most exchanges in the crypto realm.
Lastly, Do Kwon has proposed that the Terra network be hard forked and the Terra Luna token transferred to the new chain. The majority of the Terra community responded positively to this idea with over 80% of the community being in favor of the hard fork.
At the moment, investors are in limbo with LUNA as they wait to see what the future holds for the Terra network. Some investors are looking to capitalize on the lowered price of LUNA, while others are saying that the coin is dead.
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