Renowned Terra whistleblower FatMan advises market participants against investing in LUNC as he sees a crash looming.
Terra Classic (LUNC) has sustained its mind-boggling run for over a week now, causing investors’ confidence in the asset to soar. As a consequence, more speculators are eventually jumping on the moving train. Notwithstanding, renowned Terra whistleblower FatMan has argued that the asset’s run will soon hit a roadblock.
FatMan mentioned this on Twitter in the late hours of Thursday. According to his tweet, many investors jumping on the LUNC craze are ignorant of market conditions and aiding in asset price action. FatMan further noted that the pump from this mass demand would most likely be unsustainable in the long run.
“Consider this a warning… An alarmingly high number of ill-informed market participants have rushed into LUNC, fuelling a speculative pump that cannot be sustained. Scarcity without utility equals futility, as SafeMoon et al. have proven,” the tweet says. FatMan then advised investors to only invest what they can afford to lose, highlighting the high probability of losses.
Consider this a warning… An alarmingly high number of ill-informed market participants have rushed into LUNC, fuelling a speculative pump that cannot be sustained. Scarcity without utility equals futility, as SafeMoon et al. have proven. Invest only what you are happy to lose. https://t.co/7ekgeMDULz
— FatMan (@FatManTerra) September 8, 2022
In response, a particular user mentioned that he would be shorting the asset, probably as a testament to his agreement with FatMan’s assertion. Nonetheless, FatMan advised against shorting LUNC, as well. According to him, the wise choice is to totally avoid the asset. He pointed out that he has no investments in the asset and no margin trading positions – short or long.
“It’s just; there are far too many crypto-illiterate people being misled – reducing supply only works if the quantity demanded remains steady,” he added.
FatMan’s tweet came as a response to an earlier warning from another pseudonymous analyst. The analyst who went by the moniker “lightcrypto” highlighted LUNC’s meteoric rise. However, he stated that the rally would not be sustained, and the probability of a massive drop is high, especially considering current market realities.
Think LUNC burn trade is about to implode — everyone knows what a game of musical chairs is and momentum just broke.
Binance announcement on not burning CEX volumes thins right tail.
5x from lows in these market conditions means elevator down is a high probability. pic.twitter.com/3OlXXRqFTr
— light (@lightcrypto) September 8, 2022
Despite these bearish forecasts, LUNC has persisted in its rally, but its momentum has decreased. Although LUNC remains the highest-gaining asset in the past week, it has shed its value by 1.7% in the past 24 hours. The asset remains the 26th largest token by market cap, with a valuation of $3.2B.
The broader crypto market is seeing a mild relief rally, with Bitcoin (BTC) and Ethereum (ETH) respectively surging by 7.6% and 4.32% in the past 24 hours as of press time. As the markets stage a brief recovery, LUNAtics expect LUNC to be carried along.
With the date for the 1.2% burn tax proposal to go live fast approaching, some proponents see a future for LUNC, hence the increasing demand. LUNC currently has a value of $0.00052 at the time of reporting, up by 132% in the past seven days.
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