- Terra Luna Classic tokens’ value surged after LFG burned 1.85 billion USTC.
- LUNC prices rose 10%, USTC 18%, following supply reduction announcement.
- Adjusted circulating supply of USTC now at 7.1 billion after correction.
On Saturday, the Terra Luna Classic ecosystem experienced a significant rise in the value of its tokens following the Luna Foundation Guard (LFG) ‘s elimination of 1.85 billion USTC and 222 million LUNC
The market reacted swiftly, with LUNC prices jumping over 10% and USTC prices increasing by 18% within hours, although these gains were not sustained. A total of 222 million LUNC and 1.85 billion USTC were deducted from the available supply because the account in question had been inactive for more than two years.
Reduction in Circulating Supply
As a result, the circulating supply of USTC now stands at 7.1 billion. The definition of circulating coins excludes those held in escrow or by the project’s team or foundation. CoinMarketCap clarifies that assets not available for public trading, those locked through smart or legal contracts, or those held by insiders like team members or private investors are not counted as circulating, even if they are no longer locked.
The changes in supply figures are not actual removals from circulation but rather corrections. It was previously incorrectly assumed that certain funds held by LFG were part of the circulating supply. The initial misunderstanding led to a rapid increase in buying activity for LUNC and USTC, causing a price spike. However, as the community became aware of the situation, the prices fell.
The Terra Luna Classic community aims to decrease the total supply by burning USTC and LUNC in the LFG wallet. The actions taken have resulted in adjustments to the supply figures rather than actual reductions from the circulating supply.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
