Terra Lunas Classic Price Drops After SEC Imposes 447 Billion Fine Can it Recover

The Terra Luna Classic (LUNC) community has been grappling with significant challenges following the market upheaval of 2022, which resulted in a staggering $30 billion loss in just one week. Despite attempts to rebrand and revitalize products, the UST logarithmic stablecoin ecosystem within Terra Luna has struggled to bounce back.

Concerns have been raised about the leadership of Do Kwon, particularly in relation to customer protection measures. The industry has witnessed the emergence of new blockchains and web3 projects that prioritize enhanced security protocols.

Let’s delve deeper into the situation.

Understanding the Settlement

As per filings with the US SEC, Terraform Labs and Do Kwon have agreed to pay a hefty sum of $4.47 billion in fines as part of a settlement with the regulatory agency. Additionally, Kwon is set to allocate around $204 million to ensure that Terraform investors are reimbursed during the ongoing bankruptcy proceedings.

Furthermore, Kwon has been prohibited from holding any leadership positions, and Terraform Labs is restricted from engaging in cryptocurrency trading activities.

LUNC Market Trends

From a technical perspective, the price of LUNC against the US dollar is currently at a critical juncture, potentially signaling further declines. This small-cap altcoin boasts a fully diluted valuation of approximately $591 million and witnesses a daily trading volume averaging about $38 million. Despite recent enhancements to the network, LUNC has been struggling to recover from setbacks experienced in 2022.

The altcoin is currently consolidating within a large triangular pattern and has lost support from the weekly 50 Moving Average (MA). Moreover, the Relative Strength Index (RSI) has failed to surpass the crucial 50-point threshold, indicating a prevailing bearish sentiment.

Can Burns Save the Day?

In an effort to boost morale, the Terra LUNC community has ramped up on-chain burn initiatives. Recently, Binance executed a burn of 1.35 billion LUNC tokens, contributing to a total burn of approximately 60 billion tokens.

Additionally, the community sanctioned a $30,000 expenditure (equivalent to 256 million LUNC tokens) earlier this week for development purposes, underscoring ongoing endeavors to enhance the platform’s capabilities.

What are your thoughts on Terra Luna Classic’s tumultuous journey?

Tags: Price Analysis