Terra founder is not as bad a bad guy, but should face punishment for the accident he made, says BitBoy.

Despite the negative conception the cryptocurrency community has of Do Kwon, the CEO and founder of TerraForm Labs (TFL), Ben Armstrong, the famous YouTuber, who goes by the brand name BitBoy Crypto, does not think bad of him. 

In a recent tweet, BitBoy Crypto said the TFL founder, whose company founded Luna Classic (LUNC) and UST Classic (USTC), is not as bad as Alex Mashinsky, founder of Celsius Network, whose project recently filed for bankruptcy. 

He added that Kwon was unfortunate to build a cryptocurrency project with a tokenomics vulnerability, which malefactors would always exploit.

“I don’t think Do Kwon is a bad guy like Alex Mashinsky. I think he built a project with a tokenomics vulnerability that was always going to be exploited,” Armstrong said.

However, Armstrong did not rule out the fact that Kwon should be held responsible for investors’ losses, as he implied that the Terra founder caused the incident.

“But just like when someone causes a car accident that results in a death… he must be held accountable for it on some level,” Armstrong added.

I don't think Do Kwon is a bad guy like Alex Mashinsky. I think he built a project with a tokenomics vulnerability that was always going to be exploited.

But just like when someone causes a car accident that results in a death… he must be held accountable for it on some level.

— Ben Armstrong (@Bitboy_Crypto) September 26, 2022

Terra Victims’ Unfriendly Nature Toward Kwon

Since the collapse of the Terra ecosystem, the project’s founder, Do Kwon, has been lambasted across various social media platforms for the unfortunate incident. It can be recalled that Terra’s previous flagship algorithmic stablecoin UST (now referred to as USTC) lost its peg to the dollar, leading to the massive collapse of other ecosystem tokens like LUNA (now referred to as LUNC).

Victims of Terra ecosystem token collapse have moved from sending death threats to hurling insults at Kwon in recent months for being responsible for their losses.

Global Authorities Pile Kwon’s Woes

It is noteworthy that Kwon’s troubles have continued to soar in recent weeks after South Korean prosecutors issued an arrest warrant for violating the country’s capital markets laws. Since the development, Kwon’s whereabouts remain unknown, with many suggesting he is currently on the run.

As reported by TheCryptoBasic yesterday, the international policing organization, Interpol, issued a red notice for the Terra founder, ordering law enforcement agents across the globe to arrest Kwon.

Binance throws the Terra Classic community a lifeline.

Here’s How Much Terra Classic (LUNC) Can Be Burned In A Year From Binance’s Implementation of Burns On Trading Fees.

Yesterday, leading crypto exchange Binance in a show of support for the Terra Classic (LUNC) community at a high cost to the exchange, disclosed that it would be burning all trading fees obtained from LUNC spot and margin trading activities in addition to the 1.2% tax on deposits and withdrawals.

So the question a lot of LUNC enthusiasts are wondering is how much can this burn from a 0.1% fee affect the LUNC supply in a year. As highlighted by Terra Rebel RexYellerBelly, about 1 trillion LUNC can be burnt yearly Binance alone, using this model and current daily trading volume information. Notably, at an average daily volume of $1 billion, Binance will burn about 1.2 trillion LUNC.

With this volume 'if' the fees sent to burn were 0.1%. That would be approximately 1Tn Lunc burnt a year by Binance alone ?. pic.twitter.com/CamsBpg5Nr

— TerraRebel (@RexYellerBelly) September 26, 2022

However, as pointed out by users in the comments, members of Binance’s VIP program, who are offered concessions because of the large volume they control, will only pay about 0.06% in fees. Factoring this into the calculation offers a range of 730 billion LUNC to 1.2 trillion LUNC burnt yearly at an average daily trading volume of $1 billion.

The total LUNC daily trading volume on Binance is $1.3 billion at press time.

Moreover, it bears mentioning that Binance’s model offers a reduced risk of reducing trader volumes, as it comes with no increased cost to traders, which would have been the case with a 1.2% tax implementation. Similarly, a tax will not discourage traders should the token’s price go up.

These are significant as Binance’s implementation gives the community a chance to hit its 10 billion supply target in about 6 years.

Notably, since Binance announced its LUNC trading fees burn initiative, the price of LUNC has surged significantly. LUNC is trading at the $0.0003059 price point, up by 65.59% in 24 hours. The Crypto Basic reported yesterday that Santiment expects this volatility to continue for a week.

After Binance Announces LUNC Trading Fee Burns, CZ Wins Terra Investors’ Hearts While FatMan Gets Slammed.

LUNC investors express gratitude to CZ but not FatMan.

Changpeng Zhao “CZ,” the CEO and founder of Binance, has won the hearts of the Terra classic community following the exchange’s announcement that it would burn trading fees on LUNC spot and margin trading pairs.

LUNC Investors Initially Slammed Binance and CZ

Recall that the world’s largest exchange by 24-hour trading volume was criticized earlier this month for not accepting to fully support the 1.2% tax burns. Some members of the Terra community took to Twitter to air their grievances at the time. 

“Extremely disappointed in CZ for not keeping his word. Applying the 1.2% tax to withdrawals and deposits only discourages people from leaving Binance. They are not applying the LUNC burn to the spot + margin trading AKA what the community asked for,” an unofficial Terra account, LUNC DAO tweeted. 

Binance quickly dismissed critics, saying the 1.2% tax burn was introduced to all LUNC on-chain transactions (deposits and withdrawals), as recommended in the community proposal. However, Binance assured aggrieved LUNC investors that it would review its decision soon.

Terra Classic Investors Make U-turn

Interestingly, Binance has implemented the Terra Classic burn mechanism on all Terra classic trading fees. 

Following Binance’s decision, a Twitter user drew the attention of CZ to the criticisms the exchange received for not implementing the tax burn across all LUNC services on the platform. 

“I hope those who made bad comments about you are ashamed now. we always believed in you, we trusted you, we love you cz,” the Twitter user said. 

Responding to the comment, CZ said: 

“Have a feeling there won’t be many apologies, lol…”

Since Binance’s founder announced the LUNC burns, several LUNC investors have expressed gratitude and apology to CZ and the exchange.

I myself was never for the hate towards @binance and especially you CZ. On behalf of the #LUNCcommunity Id like to directly say We are not too big to admit taking the wrong stance, with that being said we apologize and we are thankful!!! ??

— Kno Idea ??‍♂️? (@producerknoidea) September 26, 2022

Terra Rebels says CZ is a true leader:

This is leadership… even decentralised chains need leaders. https://t.co/b4l2CZHzBM

— TerraRebel (@RexYellerBelly) September 26, 2022

LUNC Holders Slam FatMan 

Meanwhile, famous Terra pseudonymous whistleblower FatMan has continued to “get on the nerves” of LUNC investors. Recall that FatMan had accused LUNC holders of bullying exchanges into implementing the 1.2% tax burn on its platform.

LUNC has voted in the suicidal on-chain burn tax, which is their prerogative. But they're now running around demanding that exchanges forcibly steal a cut out of traders' transactions and throw it into the burn wallet to pump their token price. Selfish, silly and anti-blockchain. https://t.co/GbLh3ugkJL

— FatMan (@FatManTerra) September 16, 2022

With Binance implementing a burn mechanism on all LUNC spot and margin trading fees, FatMan, once again, took a swipe at LUNC enthusiasts, saying:

Binance deciding to burn millions of dollars out of their own pocket because of the unreasonable demands of an angry Twitter mob is a true exemplar of the raw, unbridled power that PR & social media hold

— FatMan (@FatManTerra) September 26, 2022

FatMan’s tweet has angered Terra classic investors, who have continued to put him on blast for hours.

@Emrezer75354268 writes: “What is your problem? What is your proposal to solve the supply problem? If you don’t have, don’t be part of problem.”

@khawajaAbubaka1 ask fatman: “Bruh U ever Happy?”

Binance is taking a different Terra Classic (LUNC) off-chain burn approach, but data indicates the exchange might burn over 1.2% on transactions.

The Terra community has been rather vocal about wanting to see the Terra Classic 1.2% tax burn implemented off-chain. The persistence of proponents has influenced a change in the decision of the world’s largest exchange Binance on the matter. 

Binance finally settled for a compromise that would satiate everyone by assuming responsibility for the LUNC tokens to be burnt, as recently reported by The Crypto Basic. The exchange decided to convert trading fees from LUNC/USDT and LUNC/BUSD spot and margin trades to LUNC, sending the resulting LUNC to a burn address.

Speaking on the recent decision from Binance, renowned Terra informant FatMan took to Twitter to reveal some interesting metrics. According to FatMan, if Binance executes the tax burn in this manner by burning 5BPS, the approach could ultimately result in an off-chain burn towering over the 1.2% proposed rate.

FatMan’s estimates arise from a rough assessment the pseudonymous crypto proponent made, considering the resulting volume drop from on-chain burns that would amount to a 90% rate. Additionally, he considered automatic compound taxes prompted by wash trading sessions.

Since a burn rate above 1.2% would help even further by allegedly reducing the circulating supply of LUNC at a greater rate than proposed, if FatMan’s estimates are accurate, Binance would be taking responsibility for the losses incurred.

According to Fatman:

“… I ran some rough numbers (factoring in the 90% post-tax on-chain volume drop & compounding taxation due to wash trading). Assuming Binance burns 5BPS, this new plan will burn far more than the 1.2% off-chain tax, all with Binance footing the bill. Amazing.”

The accuracy of this assessment remains to be seen, but Binance might not be concerned regardless. Before the recent decision, Binance introduced the “opt-in feature” suggestion as a means to bring democracy to the scene, which most of the Terra community did not receive well.

Binance’s current decision to take responsibility for the LUNC tokens to be burnt underlines its commitment to the satisfaction of customers. The latest move from Binance has seen positive reception so far, but a self-acclaimed retired crypto trader noted that it might not be as efficient as many belief. According to him, VIP market makers are responsible for the highest volumes on Binance. 

These investors do not pay any fees for their transactions. As a consequence, Binance would not see a lot of fees from LUNC trades to burn.

“amount of burn from retail spot fees won’t put a dent in the 2 billion dollar market cap, even over one year/5 year,” he noted.

majority of volume is from VIP market makers who pay close to 0% in trading fees [my trading fees are miniscule]; amount of burn from retail spot fees won't put a dent in the 2billion dollar marketcap, even over 1 year/5 years; short term narrative and meme burn for marketing

— GCR (@GCRClassic) September 26, 2022