The price of Terra’s $LUNA tokens has mysteriously shot up over the last few hours to now trade above the $5.9 mark, leaving most traders puzzled as to what is going on with the price of the cryptocurrency.
According to data from CryptoCompare, Terra’s trading volume suddenly exploded from around $6 million to over $200 million over the last few hours. Around 60% of $LUNA’s trading volume occurs on the Binance exchange, with OKX representing around 25% and Gate.io representing 5.4%.
The sudden price explosion has left traders on the website’s forums puzzled as to what is happening, with some suggesting it’s a pump-and-dump scheme meant to take advantage of those that believe in the cryptocurrency’s future.
The move led to the liquidation of around $7 million in leveraged positions against the cryptocurrency, which may also suggest a short squeeze was behind the price rise. On social media, a popular analyst and researcher known as FatMan noted that a wallet owned by Terraform Labs sent 435,000 tokens to Binance ahead of the pump.
It’s worth noting that the original Terra network was rebranded to Terra Classic ($LUNC) after the value of UST plunged and led to the minting of trillions of tokens. As CryptoGlobe reported, crypto exchange KuCoin announced support for the 1.2% tax burn proposal of the Terra Classic ($LUNC) community if “the proposal is officially approved and implemented” on the Terra Classic mainnet.
Over the proposal, the price of LUNC moved up over 450% in the past one-month period, from $0.00010219 to $0.00056442. The surge was widely coitized on social media, with some traders claiming LUNC’s community wasn’t properly informed when it came to the burn proposal’s support.
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