Dear lunatics. Please read this to clarify your concerns about the price potential for LUNC token.
If the price were to reach $0.001, then the market cap would be $6.9 billion dollars. Luna would be the 14th biggest cryptocurrency (counting stablecoins), behind Lido Staked Ether. This is not totally unrealistic, but it is still pretty far out. It's a long shot.
If the price were to reach $0.01, then the market cap would be $69 billion dollars (nice). Luna would be the 3rd biggest cryptocurrency behind Ethereum and Bitcoin itself. This is so unlikely that it verges on impossible. Even back in its glory days, the absolute peak of the LUNA token's market cap was only $41 billion dollars. So imagine the price of $0.01 for LUNC now as equivalent to reaching right around $200 for the old LUNA which had a far lower supply before the rug pull occurred. The old LUNA never reached even close to that value, with its peak being at about $120. That was even WITH a ponzi scheme mechanic keeping the price afloat temporarily. The new LUNC doesn't have this mechanic anymore since UST is dead.
Any higher price targets for Luna are a full-on delusion. At a price of $0.055 LUNC would flip Bitcoin as the largest cryptocurrency, something that has never before happened in the history of crypto. The probability of LUNC flipping Bitcoin is easily far less than 0.000001%.
As for the price of LUNC going to $1, this is genuinely impossible, and I don't use that word lightly. The value of all cryptocurrencies put together is 1.06 trillion dollars. The value of LUNC would be 6.9 trillion dollars at this valuation. This means if everyone in the world were to sell every single cryptocurrency in existence and buy LUNC with the money, and somehow this didn't drop the market cap (which it would), LUNC would still not reach anywhere even remotely close to $1.
Now, in the comments, you are going to try and tell me that people will burn a lot of LUNC tokens, which does change the market cap dynamic because it reduces the supply side of the equation. This is also pure delusion. Nobody is going to burn a substantial amount of LUNC tokens.
The current amount of LUNC burned so far is only 3.6 billion tokens. This equates to 0.052% of the total supply of LUNC. That's right. 0.052%. You would need to burn 18 times more just to burn a single percent of the supply of LUNC.
As soon as the burning goes into full gear, network activity for the LUNC chain will screech to a halt since nobody will want to waste 1.2% per transaction paying fees when they can just sit on their hands. Not only this, trading volume on exchanges that are compliant with the burn for in-house trades will also lose a substantial portion of their volume, as traders move their LUNC tokens over to trade on exchanges like Binance which do not charge a prohibitive 1.2% trading fee. It is a known fact that around 90% of the volume in all markets is given by trading bots rather than humans. These bots will all entirely leave exchanges with huge fees and move to ones without fees. This means the ultimate impact of the burn fee on transactions will be next to nothing. The lower volume will also mean the LUNC price goes down. The spreads for trading LUNC will be absolutely massive since market makers will be unable to arbitrage the spread without paying 1.2% in fees BOTH WAYS. Expect a spread of at very least 2%, if not more. Within a few weeks, Lunatics will likely realize how stupid this burning idea was, and turn it off with a proposal just the way they turned it on.
I would be shocked if in total this effort is able to burn any more than 1% of the total supply of LUNC. If this 1% burn did happen, then the price limits mentioned would be only a tiny bit higher but mostly unchanged. The odds of any truly substantial amount of tokens being burned are very slim. Who wants to burn money? Almost nobody. Almost all of you reading this are poor and don't have money to burn. I even have a lot of money to burn, but I'm still not going to because that would be very stupid and financially irresponsible.
I hope this clears everything up!
If the price were to reach $0.001, then the market cap would be $6.9 billion dollars. Luna would be the 14th biggest cryptocurrency (counting stablecoins), behind Lido Staked Ether. This is not totally unrealistic, but it is still pretty far out. It's a long shot.
If the price were to reach $0.01, then the market cap would be $69 billion dollars (nice). Luna would be the 3rd biggest cryptocurrency behind Ethereum and Bitcoin itself. This is so unlikely that it verges on impossible. Even back in its glory days, the absolute peak of the LUNA token's market cap was only $41 billion dollars. So imagine the price of $0.01 for LUNC now as equivalent to reaching right around $200 for the old LUNA which had a far lower supply before the rug pull occurred. The old LUNA never reached even close to that value, with its peak being at about $120. That was even WITH a ponzi scheme mechanic keeping the price afloat temporarily. The new LUNC doesn't have this mechanic anymore since UST is dead.
Any higher price targets for Luna are a full-on delusion. At a price of $0.055 LUNC would flip Bitcoin as the largest cryptocurrency, something that has never before happened in the history of crypto. The probability of LUNC flipping Bitcoin is easily far less than 0.000001%.
As for the price of LUNC going to $1, this is genuinely impossible, and I don't use that word lightly. The value of all cryptocurrencies put together is 1.06 trillion dollars. The value of LUNC would be 6.9 trillion dollars at this valuation. This means if everyone in the world were to sell every single cryptocurrency in existence and buy LUNC with the money, and somehow this didn't drop the market cap (which it would), LUNC would still not reach anywhere even remotely close to $1.
Now, in the comments, you are going to try and tell me that people will burn a lot of LUNC tokens, which does change the market cap dynamic because it reduces the supply side of the equation. This is also pure delusion. Nobody is going to burn a substantial amount of LUNC tokens.
The current amount of LUNC burned so far is only 3.6 billion tokens. This equates to 0.052% of the total supply of LUNC. That's right. 0.052%. You would need to burn 18 times more just to burn a single percent of the supply of LUNC.
As soon as the burning goes into full gear, network activity for the LUNC chain will screech to a halt since nobody will want to waste 1.2% per transaction paying fees when they can just sit on their hands. Not only this, trading volume on exchanges that are compliant with the burn for in-house trades will also lose a substantial portion of their volume, as traders move their LUNC tokens over to trade on exchanges like Binance which do not charge a prohibitive 1.2% trading fee. It is a known fact that around 90% of the volume in all markets is given by trading bots rather than humans. These bots will all entirely leave exchanges with huge fees and move to ones without fees. This means the ultimate impact of the burn fee on transactions will be next to nothing. The lower volume will also mean the LUNC price goes down. The spreads for trading LUNC will be absolutely massive since market makers will be unable to arbitrage the spread without paying 1.2% in fees BOTH WAYS. Expect a spread of at very least 2%, if not more. Within a few weeks, Lunatics will likely realize how stupid this burning idea was, and turn it off with a proposal just the way they turned it on.
I would be shocked if in total this effort is able to burn any more than 1% of the total supply of LUNC. If this 1% burn did happen, then the price limits mentioned would be only a tiny bit higher but mostly unchanged. The odds of any truly substantial amount of tokens being burned are very slim. Who wants to burn money? Almost nobody. Almost all of you reading this are poor and don't have money to burn. I even have a lot of money to burn, but I'm still not going to because that would be very stupid and financially irresponsible.
I hope this clears everything up!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.