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.
Terra Luna Classic (LUNC) is facing a grand LUNC burn after the Securities and Exchange Commission (SEC) gave TerraForm Labs an ultimatum to eliminate all LUNC and USTC.
According to the SEC’s judgment, the defendants must burn or destroy private keys in TerraForm’s possession to wallets or blockchain assets holding UST, MIR, LUNA, Wrapped LUNA, and LUNA 2.0, giving a deadline of October 31, 2024.
“The judgment also permanently enjoins the defendants from offering or selling any digital asset securities in the United States without registering the offering or sale with the SEC.”
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.
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 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.
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