Terra Luna Classic LUNC Price Faces Challenges After US SEC Settlement With Historical Significance

The Terra Luna Classic (LUNC) community has faced significant challenges since the market collapse of 2022, resulting in a loss of over $30 billion within a week. Despite rebranding and introducing new products, the historic decline of UST logarithmic stablecoins continues to impact the Terra LUNC ecosystem.

Questions have been raised about Do Kwon’s leadership, particularly regarding customer protection measures, as new blockchains and web3 projects with improved safeguards have emerged in the past two years.

The Terra ecosystem has been hit with hefty fines according to US SEC filings, with Terraform Labs and Do Kwon agreeing to pay $4.47 billion in fines as part of a settlement. Kwon is also expected to pay $204 million to reimburse Terraform investors in the ongoing bankruptcy proceedings, while being barred from holding a leadership position and engaging in crypto trading operations.

Looking at LUNC’s price action against the US dollar, the altcoin is at a critical juncture that may lead to further losses. Despite a fully diluted valuation of $591 million and a daily traded volume of $38 million, LUNC has struggled to recover from the events of 2022. The altcoin remains in a macro triangular pattern, having lost support from the weekly 50 Moving Average (MA) and facing resistance from the Relative Strength Index (RSI) below the 50 basis point level.

To boost bullish prospects, the Terra LUNC community has advocated for increased on-chain burns. Binance recently burned 1.35 billion LUNC, adding to a cumulative total of around 60 billion burned. Additionally, the community approved a $30k spend for development works earlier this week.

Tags: Price Analysis