- SEC’s ultimatum to TerraForm Labs involves a LUNC & USTC burn.
- One-third of a quadrillion Terra Luna Classic tokens await burning.
- Shuttle Bridge asset holders are urged to withdraw their balances.
The community-owned Terra Luna Classic blockchain is slated for a massive Terra Classic burn per the Securities and Exchange Commission’s (SEC) ultimatum for TerraForm Labs. By order, TerraForm Labs must eliminate all LUNC and USTC.
Grandiose LUNC Burn in the Next 10 Days?
“The judgment requires the defendants to burn or destroy private keys in TerraForm’s possession to wallets or blockchain assets holding UST, MIR, LUNA, Wrapped LUNA, and LUNA 2.0,” states the SEC, giving a deadline of October 31, 2024.
Ten days before the LUNC burn event, holders of digital assets on Terra Luna Classic’s Shuttle Bridge are prompted to withdraw their remaining wealth, as Shuttle Bridge will be permanently closed due to TerraForm Labs’ vow to close blockchain operations.
Sponsored
According to current calculations based on the lawsuit, the burn could total 275 billion tokens. These initial calculations were done considering the Mirror Protocol and Anchor Protocol amounts. Nearly a quarter of a trillion LUNC burned in one go would be unprecedented, potentially in line with the 1 billion USTC burn.
Terra Classic’s Key Level to Watch Out For
Terra Luna Classic’s unassertive upward trajectory over the past 30 days has left investors guessing why the embattled altcoin didn’t showcase a high correlation with Bitcoin (BTC). In these 30 days, Bitcoin and Ethereum (ETH) clinched double-digit gains, while LUNC was rejected before the critical resistance at $0.000095.
Unclaimed since October 1, 2024, this price level potentially determines short-term momentum, which relies on the trading volume and large holder sentiment. Judging by the Chaikin Money Flow (CMF) hovering below zero at -0.19 on the hourly charts, large investors were reducing their LUNC positions.
On the Flipside
- Terra Classic (LUNC) has fallen below a $1 billion market cap since early March 2024, while Binance’s monthly LUNC burns rarely had an instant impact on prices.
- Despite stagnant trading volumes on Spot, LUNC saw an 88% spike in Derivatives, with Binance customers placing twice as many long positions than LUNC shorts.
Why This Matters
The shadow of Terra’s downfall in 2022 keeps haunting LUNC, which is decreasing in popularity, even though the community strives to restore the chain’s reputation and original features after TerraForm Labs gave the Layer-1 chain to communal governance.
Read DailyCoin’s trending crypto stories:
Coffeezilla Exposes Andrew Tate’s ‘Crypto Grift’ Through Meme Coins
XRP Finds Momentum as New ETF Filings Set the Stage for a Pump
