Unlikely LUNC recovery smells like a bull trap

Let me drop a disclaimer that I honestly don't think LUNC will ever recover from the current situation and I'm quite certain that it will eventually fade into oblivion. However, the applaudable attempt to actually bring it back to life by the community is quite fascinating.

LUNC, formerly LUNA, is probably the catalyst of this "wicked" bear market that we find ourselves in. Billions of dollars evaporated after UST stablecoin lost its peg and things just continued to spiral from that point.

In recent times, there have been attempts by a small number of the community to bring it back to life. They're actively shilling and even implementing proposals to save the useless asset.

Lets face it, there's no hope for LUNC. All the serious applications on the blockchain already moved to Polygon, Cosmos or other chains that took them in.

The hopelessness of the situation has done nothing to derail the seemingly bullish perception of members of the community. As reported by Coindesk, a recent proposal recently got voted in to burn a bunch of Luna tokens.

According to the proposal, 1.2% of every transaction cost will be burnt. The obvious reason is that LUNC supply is too high and burning the token could work eventually reduce the supply.

At the time of writing, there are at least 7 Trillion LUNC tokens available and with LUNC being relatively cheap to perform transactions, this "tax burn" as it is described will take quite a long time to actually amount to anything substantial.

Slippery

The way I see it, the only smart play is to avoid LUNC completely but all things considered, we are somewhere close to the bottom, and a couple of dollars can buy thousands of the tokens, so maybe do it for the lulz?

I'm honestly not sure how the LUNC community thinks they'll be able to achieve much with that burn rate. Without even leaving the surface, the fact that virtually all applications on the chain have left means that there won't even be enough "patronage" to burn any decent number of tokens.

Considering that there are at least 7 trillion tokens in existence, LUNC is looking at burning somewhere around 6.5Trillion tokens at least, for anything sensible to come out of I reckon this should take only 200 years to achieve, so let's call it a long-term play.

Here's the thing though, the crypto industry as a whole is quite fickle and despite losing money so often, we actually move on easily. People have moved on from LUNC: this includes the devs and the community that actually uses the applications.

The only hope that LUNC has is if Justin Sun comes into the equation, creates millions of bots to create fake transactions and "boosts" the community in the way he did with the Tron foundation. I haven't seen anything connecting him to the situation, so I can't speak about it.

The point is that LUNC is effectively going to become a shitcoin that people trade for the lulz and nothing more. Nobody is going to be around for that long, especially when it is a dead project like LUNC.

So, while a bullish LUNC is a good sign, it is only either dumb money or traders that are going to dump on "the last fool" in the system. LUNC is dead and it will never rise again, however, don't let that stop you from pumping my bag.

Disclaimer: This is not financial advice.

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Unlikely LUNC recovery is Bullish

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