FatMan warns LUNC investors not to get too excited about planned coin burns, claiming that the coin’s chances of ever reaching $0.001 are nil.
Since the Terra Luna (now LUNC) and UST crashed a few weeks ago and Terra 2.0 went live, LUNC holders have been looking for a way to boost the price of their coin and recoup some of their losses.
One way to accomplish this is to burn coins. There are currently close to 7 trillion LUNC tokens in circulation. The price is now $0.00006 per coin. According to the new buyers, the coin burns are expected to push the price to $.001. FatMan assures them that this will never happen.
The price will not reach $0.01
In a recent tweet, FatMan goes after those peddling false narratives about LUNC and attempting to entice unsuspecting investors into purchasing LUNC in the hope that it will soon reach $0.001. He believes that no matter how much LUNC is burned, the price point will never be reached.
He demonstrates this by stating that a $0.001 price point would necessitate a $40 billion market cap, which cannot be attained.
On-Chain Volume Is Extinct
Following that, FatMan justifies his claim. For starters, LUNC no longer has on-chain volume. Because there are no products to push on the chain, there is no demand for the token. LUNC does not have a utility. Most of the systems and protocols associated with it have been migrated to the new LUNA on Terra 2.0. There is simply insufficient on-chain volume to justify a price increase and increase LUNC’s market cap.
Major exchanges will not support it
Furthermore, even if the community started massive LUNC burns, most top exchanges would not support the move. According to FatMan, Binance owns over 2 trillion LUNC, accounting for nearly one-third of the total supply. Even if the exchange decided to burn its LUNC holdings, the price would never reach $0.001. As a result, massive LUNC burns are not a viable option for Binance or any other exchange.
According to Fatman:
“Assume Binance burns their entire 2.17T (2,170,000M) LUNC wallet, a bigger burn than all of the proposals, bringing the supply down to 4.37T. A $0.01 LUNC will require a $43.7b market cap – 109.25x higher than the current market cap.
Not possible IMO”
FatMan’s point is that investors should exercise caution when investing in LUNC and not be misled by unrealistic projections.