The Terra community was in a celebratory mood as the LUNC token saw a significant price surge over the weekend; Nayib Bukele, known for his pro-Bitcoin stance, has been re-elected as President of El Salvador; South Korea’s FSS Explores Bitcoin ETF from the SEC
MrDiamondhandz, a member of the Terra community, hinted in an X (formerly Twitter) post that Binance had contributed to the latest price surge following their recent LUNC token burns.
Data from LUNC Metrics showed that the largest crypto exchange burned over 2 billion tokens on February 1.
That move ultimately triggered an increase in LUNC’s price. The crypto token was one of the biggest gainers over the weekend, with its volume surging by over 700% on February 4. On the same day, Binance burned an additional 135,000 LUNC tokens, something which could have contributed to the sustained upward movement.
Token burning is one of the primary mechanisms the Terra community devised to revive LUNC following the LUNA crash in May 2022. This led to the introduction of a 1.2% burn tax on all on-chain transactions, which Binance agreed to implement. The goal is to eventually reduce LUNC’s circulating supply to 10 billion.
Binance has played an active role in helping achieve these token burns. The crypto exchange is the number one LUNC burner, with over 51 billion tokens burned so far. That figure also accounts for 52.2% of all the tokens that have been removed from circulation. Before these February burns, Binance had already burned over 5.5 billion tokens in January this year.
LUNC still has a circulating supply of 5.78 trillion, and a significant portion of these tokens will have to be burned if the crypto token hitting at least $1 is to become a reality. Token burns do not also work in isolation, as there will need to be an increased demand for the token. That explains why the development team continues to take steps to increase LUNC’s utility.
Bitcoin Champion Nayib Bukele Clinches Re-election in El Salvador
Nayib Bukele, known for his pro-Bitcoin stance, has been re-elected as President of El Salvador according to exit polls.
Since assuming office in 2019, Bukele has garnered attention for his policies aimed at reducing gang violence and embracing Bitcoin as legal tender—a pioneering and controversial move globally.
His administration’s introduction of the Chivo crypto wallet and investment in Bitcoin underscored his commitment to cryptocurrency. Despite facing international scrutiny, notably from the IMF, Bukele’s re-election with over 85% of the vote reflects widespread domestic support.
His next term is anticipated to focus on further integrating Bitcoin into the nation’s economy, including launching Bitcoin-backed “Volcano bonds” to finance renewable energy-powered BTC mining. Bukele’s leadership continues to place El Salvador at the forefront of cryptocurrency adoption among nation-states.
An El Salvador Volcano Bond, also known as the “Bitcoin Bond,” is a financial instrument proposed by the government of El Salvador. The concept was introduced as part of the country’s broader initiative to embrace cryptocurrency, particularly Bitcoin, as legal tender—a move that El Salvador made in September 2021, becoming the first country in the world to do so.
South Korea’s FSS Explores Bitcoin ETF from the SEC
FSS chairman Lee Bok-Hyun plans to discuss aspects of the South Korean financial markets including spot Bitcoin ETFs in Q2 of 2024.
The top financial regulator in South Korea, the Financial Supervisory Service (FSS), is considering reaching out to the SEC in the US for advice on spot Bitcoin ETFs. Under the Financial Services Commission’s general supervision, the FSS investigates and oversees financial organizations. At the Financial Supervisory Service in Seoul on February 5, FSS chairman Lee Bok-Hyun presented a business plan for 2024.
Some parts of the South Korean financial markets, including spot Bitcoin (BTC) exchange-traded funds (ETFs), will reportedly be discussed during visits to major advanced financial markets like New York in the second quarter of the year.
The head of FSS has stated his intention to meet with SEC Chair Gary Gensler later in 2024 to address various matters, including digital assets and Bitcoin ETFs.
The recent approval of spot Bitcoin ETFs by the SEC, he continued, has a profound effect on global financial policy. Just weeks after the SEC greenlight, the first spot Bitcoin exchange-traded funds (ETFs) in the US, Lee makes his announcement.