This is the reason Terra (LUNA) price jumped by over 50% over the weekend

This is the reason Terra (LUNA) price jumped by over 50% over the weekend

By Charles Thuo - min read

Terra (LUNA) price has experienced a significant price hike over the weekend and into the early hours of Monday morning after holders burnt millions of LUNA tokens after Do Kwon, Terra Labs founder, sent a link address on May 21 to burn the LUNA tokens. 

However, Kwon later explained via a tweet that he was not for the idea of burning LUNA tokens.

Earlier today, May 23, Do Kwon clarified the confusion brought about by the address he shared and as more people rushed to send their tokens to the address. He warned people against sending their tokens via the link address to avoid tokens loss.

He added that he shared the link unwillingly as people kept on asking for the link address. He also noted that people can continue to send LUNA tokens of their own free will but he does not see any benefit in doing that.

Do Kwon said:

“People kept asking for the burn address – happy to provide for information purposes but want to clarify that you should not burn tokens unless you know what you are doing – i for one cannot understand.”

However, following the announcement, the price of LUNA has indicated some drop, and its currently trading at $0.0001997, up 18.46% from a daily high of $0.0002165. Terra UST is also trading at $0.07407, up 15.46% after it de-pegged from the $1 peg on May 9.

Meanwhile, the Terra community is still sending LUNA to the link address shared by Kwon as they believe that with a combined effort and support, they can push the price of LUNA to over $1.

Terraform Labs Revival Plan

Terraform Labs is carrying on with forking Terra after 66% of people voted for the plan. They believe that most validators are not interested in community opinion but in the fork. In this plan, there will be a new Terra blockchain without the UST stablecoin while the old chain will be called Terra Classic (LUNC). 

According to the proposal:

“Luna to be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic. * TFL’s wallet