Terra Luna Pumped By 100% Over The Weekend.

25 May 2022

Source: Google.com

The price of Terra Luna, a volatile cryptocurrency created by Terraform Labs, increased by 100 percent over the weekend. Intriguingly, Terra Luna was completely wiped out earlier this month after the stablecoin TerraUSD de-pegging debacle, which wiped away billions of dollars in investor capital and prompted governmental investigation of stablecoins.

See also:  Will Terra/ Luna Recover From The Crash?

According to data from CoinMarketCap at 9:00 am IST on Monday, the token's value has increased by 60 percent since the weekend's end.

So, what may have caused this sudden increase in the token's value? 

1.Exchanges Disabled Shorting of The Luna Token
The increase in Terra Luna's value can be attributed to the difficulty traders have in shorting the asset. Most cryptocurrency exchanges disabled the margin trading of the Terra Luna coin, making it impossible to short the token.

2. Token Burn 
As part of the plan to revitalize the Terra ecosystem, Do Kwon recommended burning Terra Luna tokens and limiting their supply to 1 billion. Eliminating crypto tokens from circulation is referred to as "burning" This decreases the overall amount of the cryptocurrency's tokens in circulation. The burnt tokens are sent to an address that may only be used to receive the cryptocurrency and for no other purpose. 

3.Luna's Upcoming Hard Fork
Do Kwon, the founder of Terraform Labs, advocated a hard fork of the Terra network and the transfer of the Terra Luna token to the new chain. Over 80% of users supported the 'Hard fork' in response to his suggestion. This may have contributed to the token's price increase over the weekend.

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