⚠️ Terra Luna Classic (LUNC), USTC Removed From Luna Foundation Guard
Terra Luna Classic ecosystem tokens recorded a massive surge in prices on Saturday as 1.85 billion USTC and 222 million LUNC tokens in the Luna Foundation Guard were removed from the circulating supply. LUNC price skyrocketed over 10% and USTC price rose 18% within a few hours, but pared earlier gains soon.
🔸 Luna Foundation Guard’s LUNC and USTC Circulating Supply
1.85 billion USTC and 222 million LUNC tokens were taken out of Luna Foundation Guard’s wallet address ********szx3nw. The move comes as the account has been dormant for almost 2 years.
As a result, USTC circulating supply is now down to 7.1 billion. Crypto assets held by team, foundation, treasury, escrow funds are not counted in circulating supply. “Assets that are locked (via smart contracts or legal contracts), allocated to insiders (e.g. teams or private investors), or not sellable on the public market are generally not regarded as circulating, regardless of whether they are unlocked,” as per CoinMarketCap.
These numbers reflect adjustments and not actual removals from circulation. Some LFG funds were miscounted as belonging to circulating supply.
🔸 LUNC and USTC Prices Skyrocket
LUNC and USTC prices skyrocketed as the news sparked buying in the community due to a decrease in supply. But as the developments became clear to the community the prices started to pullback.
The Terra Luna Classic community seeks to burn USTC and LUNC in the LFG wallet to reflect in total supply, but it was just adjustments and not actual removals from circulating supply.
LUNC price is currently up 4%% over the last 24 hours, with the price currently trading at $0.0001062. The 24-hour high and low are $0.0001020 and $0.0001129, respectively.
Meanwhile, USTC price also jumped 7% in the last 24 hours, with the price currently trading at $0.0235. The 24-hour low and high are $0.0215 and $0.0251, respectively. Moreover, the trading volume has increased by 118% in the past 24 hours.
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🔥Hold Your Crypto! Bank of America Says Don't Sell Just Yet🖖
Bank of America (BoA) is urging investors not to sell their crypto despite the upcoming Consumer Price Index (CPI) report. With inflation numbers for April 2024 set to be released soon, the bank's message is clear: HODL and keep an eye on the market.
What to Expect from the Upcoming CPI Report
The US Bureau of Labor Statistics is releasing the latest inflation data on May 15, and it's likely to shake things up. Analysts predict that headline inflation will increase by 0.4% and core inflation by 0.3%, keeping prices high above the Federal Reserve's 2% target.
What This Means for Crypto
Historically, summer has been a strong season for stocks, especially during presidential election years. BoA notes that the S&P 500 tends to rally between June and August, with average gains of 3.2%. In election years, this jumps to 7.3%, with the S&P 500 gaining 75% of the time. Bitcoin also shines in these years, boasting an average return of 23.68%.
Don't Sell!
BoA advises against selling right now, pointing out that the market has a tendency to heat up during summer, particularly in election years. This historical trend might mean a boost not just for stocks but for Bitcoin and other cryptocurrencies as well
Crypto is not just for retail investors anymore. Major institutions like Susquehanna International (holding $1.2 billion in Bitcoin across ten ETFs) and Hightower (with $68 million in Bitcoin through six ETFs) are showing their faith in Bitcoin. This kind of institutional backing could mean that BTC & other cryptos are seen as a hedge against inflation.
Bottom Line: Keep Calm and HODL
While the upcoming CPI report could bring market volatility, BoA advises caution and patience. Don't rush to sell your crypto; historical data suggests that the market could be set for a summer rally, especially with election year trends in the mix. Stay tuned for the latest inflation data, but remember, the long-term prospects for crypto could be very promising.
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