Do Kwan Is On The Run. And LUNC Is On A Run, Surging 40%: How Terra Classic Became The Luna Crisis Proxy

Zinger Key Points
  • LUNC token is up 40% in 24 hours, and trading volumes surged 400%.
  • A court in South Korea recently issued an arrest warrant for Do Kwon.

Even as Interpol has issued a red notice alert for Do Kwon, founder, and CEO of Terraform Labs that wiped out $40 billion of investors' money, the native asset of the old Terra Chain rose by over 40% on Monday.

The move came after Binance announced a system of destroying Luna LUNC/USD tokens based on the trading fees involved in trading the crypto on the world's largest exchange. A "burn fee" of 1.2% is applied when traders buy or sell Luna, although in most cases those fees range from 0.02% to 0.1%.

LUNC is currently trading at $0.00030 at the time of publishing, up about 40% over the previous 24 hours and over 10% for the previous week.

400% rise in volumes

LUNC was also showing a nearly 400% spike in trade volumes.

The amount of intra-exchange trade is indicated by trading volume.

Trading volumes on LUNC could have increased as dealers sold their tokens on exchanges.

A corresponding decision to purchase from exchanges also occurred at the same time with a surge in trading volumes.

After the 1.2% tax burn was launched on September 21, there was a noticeable increase in interest in LUNC by the crypto community.

The enthusiasm, however, swiftly subsided as the price dropped by over 90% since Sept. 17.

The token faced further pressure after an international arrest warrant was issued for Kwon over the collapse of his blockchain platform Terraform Labs, as he faces multiple criminal charges in South Korea.

Also Read: Bitcoin, Ethereum, Dogecoin Subdued: Why This Analyst Says Volatility Is 'Going To Kick In' Next Week

South Korea ups the ante against Kwon

A court in South Korea recently issued an arrest warrant for Kwon, alleging that he and five other people had violated the capital markets law.

The matter took a U-turn when Singaporean police denied that Kwon was in their country.

The last time the founder of Terra tweeted was on Sept. 17, joking, "Tbh haven't gone running in a while, need to cut some calories," even as he insisted that he was not on the run.

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Posted In: CryptocurrencyMarketsBlockchainDo KwonLunaLUNCterra blockchain
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