Terra Luna Classic (LUNC) Price Rose After Do Kwon Pleaded Not Guilty and Binance Incinerated Over 1.7 Billion LUNC Tokens

LUNC was trading at $0.0001150 on January 1, up by over 25% from its lowest level last month, giving it a market cap of over $1 billion.

The Terra Luna Classic (LUNC) price rose for the second consecutive day on January 1 as Binance burned over 1.7 billion LUNC tokens. At the same time, Do Kwon pled not guilty in a New York court.

LUNC was trading at $0.0001150, which is over 25% higher than its lowest level in December. At the current price, LUNC has a market cap of over $1 billion, making it the 63rd biggest cryptocurrency in the world.

Binance burns Terra Classic tokens

The biggest news in the LUNC ecosystem was that Binance continued burning the tokens. Binance burns a portion of the LUNC trading fees as part of a plan to reduce the tokens in circulation.

On December 31, Binance burned over 1.7 billion LUNC tokens, which are valued at $193,000 at the current prices. This burn came a day after the exchange burned 1.728 billion LUNC tokens.

In total, Binance has burned over 70 billion LUNC tokens in the past two years. These tokens are about 17.7% of the total that have been burned.

Binance has also led in the number of burns, having done over 2,200 burn transactions. Other top burners are DFLUNC Protocol, LunaticsToken, MEXC, and Terraform Labs.

Collectively, over 396 billion Terra Luna Classic tokens have been burned since May 2022, when the original Terra ecosystem collapsed.

Of these tokens, over 237 million have been burned in the past seven days. This burn is set to continue for a while.

Do Kwon pleads not guilty

The LUNC price also reacted mildly to the latest Do Kwon news. Kwon, the founder and controlling shareholder of Terraform Labs, was recently extradited to the United States from Montenegro.

He pleaded not guilty in a New York court on December 30. Kwon has been charged with deceiving investors about the Terra Blockchain, its stability, and its partnership with Chai, a popular money transfer service in South Korea.

Kwon is being prosecuted by the same officials who charged Sam Bankman-Fried, the former CEO of FTX, who was sentenced to 25 years in prison.

The LUNC price reacted mildly to Kwon’s issues because he is no longer involved in the project. Terraform Labs filed for bankruptcy and agreed to burn billions of LUNC tokens in 2022.

LUNC price technical analysis: bearish pennant forming

On the daily chart, we see that the LUNC price has remained in a tight range even as the token burn continues. It is consolidating at the 50-day and 100-day moving averages and remains below the key resistance level at $0.0001311, which was the highest swing in May last year.

The token is also forming a bearish pennant chart pattern, which suggests that there could be a strong bearish breakout in the coming days. If this happens, the next point to watch will be at $0.00009060, which is on the lower side of the pennant pattern.