The Terra price soar comes after people start to send LUNA tokens the provided burn address.
The Terra (LUNA) price has increased by more than 40% in the last 24 hours as LUNA holders burned millions of tokens. However, Terraform Labs founder Do Kwon claims that sending LUNA to the burn address is a bad idea and that users will lose their tokens.
Since Do Kwon revealed the burn address on May 21, the price of LUNA has increased by more than 100 percent. However, Terra’s founder Do Kwon clarified the confusion among LUNA holders in a recent tweet on May 23 as people rushed to send tokens to the address. He believes that sending tokens to the address will result in token loss. Do Kwon tweeted the address below:
Do Kwon that he shared the address after people kept asking him about the burn address? He also stated that people can continue to send LUNA tokens if they so desire, but he is unaware of any benefit to doing so.
Following the announcement, the LUNA price fell nearly 15%, and it is now trading at $0.0001881. Meanwhile, UST has increased by 30% in the last 24 hours, with the current price trading at $0.07616.
The Terra community, on the other hand, continues to send LUNA to the address, believing that collective support will push prices above $1.
Revival Plan To Fork The Terra Chain
Terraform Labs is forking Terra after 66 percent of voters supported the competing plan. Many people believe that most validators are only interested in the fork and are uninterested in community opinion. A new Terra blockchain and LUNA ($LUNA) token will be created as part of the rebirth plan. Terra developers have also expressed their support and pledged to build on the fork through public channels.