© Reuters. Do Kwan Is On The Run. And LUNC Is On A Run, Surging 40%: How Terra Classic Became The Luna Crisis Proxy
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 Chain rose by over 40% on Monday.
LUNC (CRYPTO: 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 announcement by Binance on the 1.2% tax burn to be applied to on-chain transactions also did not improve the mood of traders.
Binance CEO denies burning fee tax
Many LUNC supporters believed that Binance will impose a token burning fee on transactions, however, Changpeng Zhao, the CEO of Binance, denied doing so.
Instead, Zhao provided each user with a subscription to burn the cryptocurrency, indicating that a comprehensive solution should only be anticipated if more than 50% of LUNC trading volumes were completed using the subscription.
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.
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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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