Key points to remember
- Gigantic Rebirth, which won a $10 million bet against Do Kwon on the future of LUNA, shorts the token again.
- The coin (now rebranded as LUNC) cratered to $0.000000999967 following the collapse of the Terra ecosystem, but is now up 33,565% from the bottom.
- The Terra community’s plan to implement a 1.2% burn fee on each LUNC transaction was thwarted by Binance’s refusal.
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Luna Classic has jumped more than 33,565% since its low in May. The token’s parabolic run is now under selling pressure from the crypto-whale Gigantic Rebirth, which had already notoriously short-circuited the Terra ecosystem before its collapse.
Crypto whale bets against Luna Classic revival.
The trader, who calls himself Gigantic Rebirth on Twitter, noted on September 9 that it bypassed LUNC. The token price was around $0.00042 at the time; it is currently trading at $0.00033.
This is the second time that Gigantic Rebirth has bet against the coin. On March 14, he made a famous $10 million bet against Terra founder Do Kwon that the price of LUNA (the symbolic name at the time) would drop below $92.4 within one year. The collapse of the entire Terra ecosystem followed nearly two months later.
Gigantic Rebirth referenced a viral Do Kwon to boast when he announced his new short film: “By my hand [LUNC] will die. Still.” Attached is a screenshot showing a short position the size of 21,988,427,000 LUNC tokens (worth ~$9,235,100 on Sept. 9). A tweet later revealed the position was opened for an average price of $0.00048 per LUNC token.
Due to the way Terra’s UST algorithmic stablecoin was designed, Luna Classic suffered from hyperinflation when the entire ecosystem imploded in early May. According to Statista, the circulating supply of the coin jumped up from 345 million tokens to 6.9 trillion, which caused its price to plummet. LUNC hit a low of $0.000000999967 on May 13; however, the price of the coin has jumped over 33,565% since then, fueling speculation that it could eventually reach $0.01 or even $1.
Reaching such prices would mean that the market capitalization of Luna Classic (currently at $2.3 billion) would exceed that of Bitcoin and reach trillions of dollars. The highly unlikely scenario hinges on the tenuous plan put forth by members of the Terra community to install a 1.2% burn fee on all transactions operated on the Terra blockchain. However, most LUNC transactions now occur on centralized exchanges such as Binance, KuCoin, and Gate.io. Binance already has announcement that it would not implement the 1.2% tax proposed by the community.
When asked for his price prediction for LUNC, Gigantic Rebirth retweeted a message from former US presidential candidate Hillary Clinton, which read, “That’s right: ZERO.”
Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other cryptocurrencies.