- A researcher in cryptocurrency and finance wrote on Twitter about how social media affects Binance.
- The head of Binance talked about the LUNC issue with his followers on Twitter (NYSE:TWTR).
- Followers put forward a plan to put the 1.2% tax in place.
The well-known influencer Fatman sent out a tweet about Binance’s decision to use the Terra Classic burn mechanism. He also said that Binance’s decision showed how much power and influence social media has “unchecked.”
Binance made it official that it was going to “burn all LUNC spot and margin trading fees by sending them to the LUNC burn address.”
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Changpeng Zhao, the head of Binance, recently had a Twitter chat with his followers and answered their questions. During the conversation, there were questions about whether or not the LUNC 1.2% tax could be put into place.
At first, Binance didn’t want to implement the LUNC 1.2% tax on trading on Binance, even though the LUNC aspirants had asked Binance to do so. The company was hesitant to start this programme because it didn’t want to lose customers or business because the market wasn’t uniform.
Since a lot of LUNC traders thought the burning act would be put into place, the company came up with an alternative. This was done because the media had a lot of power. Zhao came up with a plan for a compromise, which was a three-step process that would end with the tax being put into place. But this won’t happen until 50% of all trades are made through opt-in accounts.
Zhao sent out a tweet about his other idea:
Instead, we have decided to start burning all trading fees that Binance collects for LUNC/BUSD and LUNC/USDT spot and margin trading.
The fees will be turned into LUNC, which will then be sent to the burn address. We pay for the burning, not the people who use it.
September 26, 2022 — CZ Binance (@czbinance)
With the news that the burning mechanism would be put into place, both the price of LUNC and the number of trades went to new heights. So, as Fatman said, it’s clear that Binance took social media into account when they made their decision.
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The post Is Binance’s Implementation of LUNC a Sign of the Power of Social Media? first showed up on Coin Edition.
