Terra Classic (LUNC) Price Plummets Amidst Controversy and Manipulation Claims
In the midst of chaos surrounding Terra, the price of Terra Classic (LUNC) has suffered a significant decline. Currently trading below its moving averages and 52-week highs, this downturn follows the shocking revelation that prominent crypto figure Do Kwon admitted to manipulating the trading volume.
The manipulation claims came to light through a series of text messages between Kwon and Chai founder Daniel Chin. Kwon suggested creating fake transactions to generate fees, while Chin expressed reservations. These revelations emerged amidst a U.S. government shutdown and a brewing controversy surrounding leaked chats.
Will the SEC Take Action?
The question on everyone’s mind is whether the SEC will intervene in response to these revelations. However, before we explore that possibility, let’s gain a clearer understanding of what’s happening with Terra.
The SEC is currently suing Terraform Labs for misleading investors about the stability of its TerraUSD stablecoin. Given the gravity of the leaked chat history, it cannot be ignored.
Chats Stir Controversy
Chai, which initially partnered with Terra to streamline payment processes, is now facing allegations of fraud from the U.S. SEC. The SEC claims that Terra failed to deliver on its promises to users by not replacing Chai’s payment systems with its own blockchain. This development is significant because Daniel Shin, the founder of Chai, was a co-founder of Terraform alongside Kwon in 2018.
Terra Faces Trouble
Once a prominent player in the DeFi blockchain space, Terra experienced a severe downturn in May 2022, leading to a bear market and causing several other projects to declare bankruptcy. Do Kwon has since faced charges from American and South Korean authorities, including document forgery. He is currently detained in Montenegro, fighting extradition to the U.S.
The uncertain future of LUNC raises concerns about its viability in the crypto market.
Is it All Over for LUNC?
Terra’s downfall has had a significantly negative impact on the crypto market, causing financial distress for projects associated with the ecosystem. Currently, LUNC is trading below its 100-day moving average but above its 52-week low. However, its trading volume in the last 24 hours is lower than its seven-day average. These numbers, combined with legal cases like fraud, may further dampen investor sentiment.
Hot Take: Uncertainty Surrounds Terra Classic (LUNC)
The recent controversy and manipulation claims surrounding Terra have caused significant damage to its reputation and price. With legal troubles, declining trading volume, and doubts about its viability, the future of LUNC remains uncertain. Investors should proceed with caution and closely monitor developments in this ongoing situation.
By
By
By
By
