Is Do Kwon afraid of the community?
On May 21, 2022, Do Kwon showed the community a burn address, intended for burning Luna. A day later, Kwon said he has the private key to this burn address. Most notably, the Luna founder announced on May 23 that burning is useless. That is strange because burning is actually useful. Is Kwon getting a little scared of the power of the community?
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Burn address is one way address
A burn address is always a one-way street. The private key is not present. This means that sending coins to this address is irreversible. The coins cannot be taken back and cannot be sent from this address.
The burn address Kwon showed to the community is considered official. All coins sent to this address will disappear from circulation. Major websites like Coinmarketcap and Coingecko have confirmed this.
Then it’s noteworthy that on May 22, Kwon indicates that he has the private key and could in fact access the coins. Immediately afterwards he says he will never do this, so we have to believe his brown eyes.
It is unclear whether or not Kwon has the private key. This man often says strange things.
Kwon says “burning is useless”
Kwon’s comments keep getting weirder. On May 23, he shared the following message on Twitter:
“To clarify, as I’ve noted multiple times I don’t think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens”.
Does Kwon not understand the idea behind token burning, or is he secretly scared? The community has shown that it is strong. It burned 170 million Luna on May 22. And the burning continues. Of course, Do Kwon never expected this.
Meanwhile, Kwon is busy with Luna’s hard fork. Around May 27 (or later) the blockchain would be split and Luna 2.0 was born. The old Luna will then be given the name Luna Classic. The currency does not disappear and remains tradable.
It’s speculation but maybe Kwon is afraid that Luna Classic will soon be stronger than the new Luna 2.0. Then his new project would be a total failure.
Is burning good or bad?
The CEO of Binance, called CZ, has explained it very nicely before. He said that printing new tokens is bad, because it causes high inflation. Creating scarcity is good for price and trust. Burning Luna is always a good idea.
Is Do Kwon pretending to be stupid or does he sense that Luna 2.0 might fail? Share your thoughts with us. Sponsor this post by sharing it on Twitter. Or send us some Luna so we can create even more great content.
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