LUNC slides as SEC triumphs over Terraform Labs in latest update
December 30, 2023
By Victor Olanrewaju
After a court declared LUNA and MIR security, LUNC’s price dropped.
The token may reverse to the upside as soon as the development goes off the radar.
The price of Terra Classic [LUNC] decreased by 5.42% in the last 24 hours. This was after a U.S. District Court ruled in favor of the SEC, and against Terraform Labs.
Terraform Labs is the startup behind Terra, the blockchain where LUNC is hosted. In February, the SEC charged TerraformLabs, opining that the now-collapsed LUNA was a security.
Per the filing, Do Kwon, the embattled co-founder of the company was also accused of orchestrating the sale of the securities. A look at the new ruling showed that the judge in charge of the case sided with the SEC.
LUNC turns bearish afterward
Judge Jed Rakoff, the judge in charge of the case concluded that Terraform Labs failed to register both LUNA and MIR as securities. Hence, the reason for the summary judgment.
Though the LUNC team had distanced itself from Do Kwon, it has not been easy to dissociate the token from developments related to the May 2022 LUNA-UST collapse. At press time, the Weighted Sentiment around LUNC had dropped to -0.517.
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