Introduction: The "Burning" Trap

In the crypto community (especially around Terra Classic / LUNC), there is ongoing talk that "coin burning" will raise the price to $1.00. This misleads many newcomers, prompting them to buy a declining asset.

I figured out the numbers, and here's why LUNC will never reach $1.00, even if it burns for 10 years.

1. Problem: Astronomical supply

Burning works only when the total supply of the coin is limited and small. LUNC is a catastrophe:

Dream math: For LUNC to be worth $1.00, with the current supply, its market capitalization would need to be $6.8 TRILLION. This is several times more than the total market capitalization of the ENTIRE current crypto market! This is economically impossible.

2. Actual burn rate: "10 years" — that’s optimism

Fans need to burn almost everything to reach a price of at least $0.01.

  • Task: Burn 99% of the current supply.

  • Mechanism: The main burning occurs through a 1.2% fee from transactions.

  • Timeframe: Even with an optimistic forecast, burning such an amount will take decades. Moreover, the fewer coins remain, the fewer transactions occur, and the slower the burning process itself becomes.

Conclusion: Your life will pass before burning has any real effect on the price.

3. Hidden risk: Money flows out, not in

"Burning" is marketing. Real capital from LUNA/LUNC/USTC continues to leave:

  • Outflow: In the last 5 days, $20.05 million was withdrawn from LUNA.

  • Speculation: LUNA is an extremely speculative asset, where the trading volume is 1.8 times higher than its capitalization. This is an anomaly that indicates an unhealthy market.

💡 Investor lesson: Choose coins with natural deflation

Don't chase coins that are forced to burn trillions. Invest in assets that have a natural limitation:

  1. Bitcoin (BTC): Has a hard limit of 21 million coins. This is the best form of "burning" — creating scarcity. This is your main asset.

  2. BNB: While Binance sometimes burns BNB to maintain its price, the main value is its utility for the exchange.

My conclusion: I myself got rid of LUNC and LUNA, converting them into BNB. Don't let promises of burning cloud your judgment. Your capital should be in scarce and reliable assets, not in trillions of "burning" wrappers.