Crypto.com Delists Terra Classic Token Following Bankruptcy Filing
Crypto.com has confirmed the delisting of the Terra Classic token (LUNC) from its trading platform in response to Terra Labs’ bankruptcy filing. The announcement of the delisting caused a 12.4% drop in LUNC within 24 hours. Initially, there were doubts about the authenticity of the news due to the lack of official communication, leading to concerns about email spoofing.
These doubts were dispelled when Crypto.com acknowledged the delisting without issuing an official statement on their website or social media platforms. The situation worsened as Terraform Labs filed for Chapter 11 bankruptcy protection, revealing assets and liabilities in the $100 to $500 million range. Despite this, the company intends to fulfill financial obligations during the proceedings without additional financing.
In late November, Terra Classic experienced a significant price rally, with a 42% increase in just 24 hours. However, its market cap has now dropped to $567 million, over 10.5% lower than before, and its daily trading volume is nearly 89% lower at $57 million.
Hot Take: Implications for Terra Classic and Crypto.com
The delisting of Terra Classic from Crypto.com following Terra Labs’ bankruptcy filing has had a significant impact on the token’s value. This raises questions about the potential risks associated with investing in tokens listed on centralized exchanges. Investors must consider not only the performance of the token but also external factors such as bankruptcy filings that can lead to delistings. It also highlights the importance of transparent communication from exchanges in providing accurate information to investors. Moving forward, both Terra Classic and Crypto.com will need to navigate these challenges and rebuild trust among their user base.
By
By
By
By