British Pound Fall, Luna Classic Rises Strong

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2022-12-08 15:37:44

Market situation

US stocks at the beginning of the week continued to be a losing session in all three Dow Jones, S&P 500 and Nasdaq indexes. Stock futures show a slight uptrend again. Gold price fell to 1637 USD/ounce. And oil fell to 77 USD/barrel. Oil is expected to continue falling because this is a major factor affecting inflation.

Contrary to stocks, Bitcoin has risen to around $19,700 in the past day, at one point having risen above $20,000. Altcoins also recovered slightly.

Coinshare statistics show that crypto products saw investment inflows totaling $8.3 million in the past week. In which, the cash flow leaves the Short BTC fund and goes into the BTC, ETH and some other small coins.

UK tax cut and pound plummeted

The first fiscal policy announcement from British Prime Minister Liz Truss’s new government was met with one of the most pronounced market sell-offs in recent history. For the first time in history, the British pound fell to a 37-year low against the dollar. The British pound fell below $1.04, while the UK 10-year gold-plated yield rose to its highest level since 2008. Not only the dollar, the pound also depreciated sharply against many other major currencies such as the Japanese Yen. , Euros,…

Britain’s new Prime Minister Liz Truss applies the “trickle-down economics” theory promoted by the likes of Ronald Reagan and Margaret Thatcher. This theory says that when the government reduces taxes and creates benefits for businesses and the wealthy, the positive effects will be trickled down to other classes. So the British prime minister introduced a series of tax cuts not seen in Britain since 1972. However, this policy was also met with many objections that it only helped the rich get richer and richer. The rich earn more does not mean they will raise wages for workers or hire more jobs. This does not affect the middle class or the poor much.

The new policy as soon as it was issued made investors worried. Reducing taxes means that the government will need to increase public debt to offset the reduced tax. At the same time, inflation could continue to soar. Currently, the trend of UK inflation continues to increase.

Luna Classic surged

Terra co-founder Do Kwon has been wanted internationally by Korean authorities and remains unknown. However, he still shared on Twitter that he was not wanted and often walked on the streets or around shopping malls. However, Do Kwon does not mention any city or country.

Faced with this situation, the Luna Classic coin (LUNC) suddenly increased sharply yesterday. LUNC’s 1.2% burn rate proposal went into effect on September 20 after a lengthy wait. Notably, this coin burning applies to all on-chain activities including any financial transactions involving wallets and smart contracts.

Yesterday, Binance exchange announced that they would support the burning of LUNC coins, causing the price of this coin to skyrocket by 60%. Binance will implement a 1.2% burn of all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC write address. The specific amount of LUNC to be burned, its equivalent in USDT and the on-chain transaction ID will be updated every week by Binance.

Burning copper is a step that helps reduce the total supply of LUNC. However, this copper burn is still very small compared to the current total of more than 6.9 trillion LUNC. Meanwhile, the number of LUNA before the incident was only about 340 to 350 million VND. Therefore, if investors choose to trade LUNC, they need to consider carefully and understand what they are doing to ensure their investment portfolio.

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