- Cryptocurrency and finance researcher tweeted about the impact of social media on Binance.
- Binance chief interacted with his followers on Twitter (NYSE:TWTR) regarding the LUNC issue.
- A proposal to implement the 1.2% tax was put forward by the followers.
The acclaimed influencer Fatman posted a tweet on his account referring to Binance’s implementation of Terra Classic burn mechanism. He added that Binance’s decision marked the “unbridled” power and influence of social media.
Binance officially announced its decision “to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address”.
Recently, the Binance Chief, Changpeng Zhao, had an interactive session with his followers on Twitter, answering their questions. In between the interaction, questions were raised about the possibility of the LUNC 1.2% tax implementation.
Initially, Binance was reluctant to implement the LUNC 1.2% tax while trading on Binance, even though the proposal was put forward by the LUNC aspirants to implement the act. The company hesitated to initiate this program as it feared losing business and customers because of the lack of uniformity in the market.
As a lot of LUNC traders anticipated the implementation of the burning act, the company came up with an alternative, following the high influence of the media. Zhao proposed a compromise, which was a three-step process in which the final step would be the implementation of the tax. However, this will be done only once the opt-in accounts make up 50% of the total trading volume.
Zhao tweeted about his alternative idea:
Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
— CZ Binance (@cz_binance) September 26, 2022
With the announcement of implementing the burning mechanism, the price of LUNC flew to new heights along with the hike in the trading volume. Thus, as Fatman commented, the influence of social media is well understood in the decision of Binance
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