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Binance LUNC burn? Binance offered to voluntarily burn 1.2% on LUNC trades

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binance lunc burn

Binance LUNC burns. Cryptocurrency exchanges may introduce a service of voluntary burning of 1.2% of LUNC in every trade. This is reported in the blog of the exchange.

The service will be introduced on a mandatory basis for all who vote only if the volume of accounts that vote for the innovation will hold more than 25% of all LUNC on the exchange. If 50% approval is reached, a 1.2% commission on LUNC trades will be implemented for all. If the 50% approval threshold is not reached within a month of the 25% transition, then Binance will waive the mandatory burning of 1.2%.

Users online have taken the news in a mixed way. Some believe that traders will ignore the 1.2% burn offer due to greed. Users also suggested that large investors would not participate in the vote.

As a reminder, in early September, the Terra cryptocurrency community approved proposals 3568 and 4159 to impose a 1.2% tax on every transaction on the network with LUNC and USTC cryptocurrencies. This should raise the LUNC price. 

The Terra ecosystem collapsed after its key stablecoin, terraUSD (UST), lost its peg to the U.S. dollar in early May. UST/USD quotes plummeted from $1 to less than a couple of cents. The Terra ecosystem’s native token, Terra (LUNA), also took a hit, losing 100% of its value in just one week in the LUNA/USD trading pair.

Earlier, we reported that the ETH emission rate dropped to 98% after the update.


Stablecoins and CBDCs: Can CBDCs replace Stablecoins?

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stablecoins and cbdc

Central Bank Digital Currencies (CBDCs) are often called the future of money. However, the cryptocurrency community is skeptical of this claim – because CBDCs in their current form do not provide the same degree of privacy as cryptocurrencies.

More and more countries are considering implementing CBDCs

Many people confuse Stablecoins and CBDCs: the concept of digital currencies is hardly new. The Bank of Finland introduced the Avant smart card to replace cash 30 years ago. In the early 2000s, the Finnish government abandoned the project, but it is considered the world’s first CBDC currency.

The second wave of interest in CBDC arose several years ago, against the backdrop of the active development of the crypto-industry. The attractiveness of the state’s digital currency to governments is obvious. Not only does it allow central banks to track and control transactions, but it also does not require intermediaries such as commercial banks.

According to the Atlantic Council Tracker, 114 countries are now considering the introduction of a CBDC currency. Together they account for more than 95% of world GDP. Eleven countries, including Nigeria and the Bahamas, have already launched their digital currencies, and China is currently pilot testing it.

But the biggest benefit of digital currency is its efficiency and ability to make payments seamless. In cases where privacy is not as important, the technology can prove its full potential. An example would be transactions between banks and other financial institutions.

The cryptocommunity is skeptical

The cryptocommunity is based on several important ideas – decentralization, freedom, and privacy. Its members believe that centralized financial institutions and governments have too much power, and people have the right to act without oversight. So it is not surprising that Web3-enthusiasts do not support the idea of CBDC. Of course, most blockchains also allow transactions to be tracked, but they are not tied to the real identity of the user.

Top stablecoins can compete with CBDC currency

The speed at which CBDCs are being implemented and the eagerness with which countries have embarked on their development look daunting. But still, there is a chance that top stablecoins will win their place under the sun.

Ultimately, the fate of CBDCs and Stablecoins will depend on several factors at once: the severity of oversight, mass acceptance and usability. And if the cryptocommunity cannot influence the decisions of regulators, then raising awareness is a realistic task. After all, while Stablecoins provide more private and secure transactions, there is no denying that central banks’ digital currencies look very attractive to people who have no experience with cryptocurrencies.

Previously, we reported that traders are being offered different insurance options in case exchanges collapse.

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Tesla no longer believes in Bitcoin long term projections due to $200 million loss

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bitcoin long term projections

Ilon Musk’s Tesla no longer believes in Bitcoin long term projections as an investment and an analog to traditional money. Twitter user @1mantruthsquad, who studied the financial statements of the company, reached this conclusion.

It turned out that Tesla made adjustments to some wording in its annual financial report to the U.S. Securities and Exchange Commission (SEC). For example, the U.S. company no longer states that it “believes in the long-term potential of cryptocurrencies.”

Is Bitcoin a long term investment?

It remains unclear what could have influenced the change in position, but Tesla also noted that at the end of 2022, losses from investments in bitcoin (BTC) amounted to $204 million. For comparison, the company lost $101 million in 2021. Moreover, profits from cryptocurrency investments decreased: while in 2021 Tesla earned only $128 million from bitcoin sales; in 2022 the company earned only $64 million from “certain conversions” to fiat.

As a reminder, in July 2022, Tesla reported selling 75% of its bitcoin investments. During a conference call with investors, Elon Musk assured that the company had gotten rid of cryptocurrency because of the uncertainty surrounding the coronavirus pandemic. According to him, it was important for the company to increase its corporate cash balance.

However, Tesla has dumped bitcoin before. For example, in April 2021, another Tesla report revealed that Tesla had sold 10% of its bitcoins at the end of March of that year. At the time, Musk insisted that with the sale, the company allegedly wanted to test the liquidity of the cryptocurrency. As of February 2023, Tesla holds less than $185 million in bitcoin on its corporate balance sheet.

To recap, Tesla first announced an investment in bitcoin in February 2021. At that time, the company invested about $1.5 billion in the largest cryptocurrency by market capitalization. At the time, bitcoin prices in the BTC/USD pair jumped from ~$39,000 to ~$45,000 in minutes amid the news. At the time of writing, BTC is trading at $23,000.

Earlier, we reported that crypto-investors gave a bitcoin forecast for today ahead of the Fed meeting.

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Solana price targets: Solana founders reveal their plans for 2023

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Solana price targets

Solana price targets: according to Solana founders Anatoly Yakovenko and Raj Gokal, the ecosystem is showing signs of active recovery, even in a volatile market.

According to a recent report from Electric Capital, the number of developers on Solana has grown 83% over the past year to more than 2,000. Only Ethereum has more.

Plans for Solana – the project managed to survive the crypto winter

Yakovenko and Gokal believe that the mass adoption of blockchain technology is rapidly disrupting traditional financial models. In their view, the only way to bring this moment closer is an uncompromising commitment to decentralization. So even despite the reputational damage inflicted on the crypto industry in 2022, the project team remains faithful to its basic tenets and works to improve Solana.

The number of validators in the network has increased – now the blockchain runs on more than 2,000 nodes. The developers have also planned performance improvements to make Solana more stable and efficient.

The project’s founders argue that the cryptocurrency community can be seen as an example of anti-fragility, a concept that suggests that attacks on the system can have an unexpected effect, making it stronger. According to them, the prolonged bear market has had just such an effect on Solana, greatly strengthening its position.

Working on the bugs

In 2022, Solana experienced several failures that caused downtime and disrupted the network’s ability to process transactions. A variety of factors, including technical problems and security breaches caused these. The repeated downtime negatively affected Solana’s reputation as a reliable and trustworthy platform, causing some investors to question its stability.

Yakovenko and Gokal confirmed that the client-validator developed by Firedancer would significantly reduce Solana’s risk of outages Thanks to its ability to handle 0.6 million transactions per second.

The future of Solana and related projects is still in question

The ecosystem was hit hard by the collapse of FTX. To explain the financial ties between Solana and the Bankman-Frieda empire, the team published an entire blog post: it highlighted that FTX and Alameda bought over 50.5 million SOL tokens worth $500 million, which will remain blocked until 2028. It also became known that as of Nov. 6, 2022, about $1 million of the project’s funds were on the exchange. The fate of those assets is currently unclear.

SOL has now recovered from its November decline and is trading at $24. Nevertheless, the constant disruptions raise questions about the stability of blockchain and the future of projects built on it – such as Serum. So even though Yakovenko and Gokal are confident, it remains to be seen whether the project will meet the challenges it faces.

We previously reported that OKX will remove the Gemini stable token from its listing.

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