Terraform Labs and its founder, Do Kwon, have reached a settlement with the U.S. Securities and Exchange Commission (SEC) after facing allegations related to fraud following the collapse of the stablecoin TerraUSD. The settlement was disclosed on a court website after a jury held Kwon and Terraform Labs liable for civil fraud charges in April. This development has sparked renewed interest in Terra-linked cryptocurrencies, LUNA and LUNC, as investors speculate on the potential impact.
Cryptos linked to the Terra ecosystem, such as Terra (LUNA) and Terra Luna Classic (LUNC), experienced significant overnight price movements following the announcement of the settlement. As of August 17, LUNA, the primary token of the Terra blockchain, has seen its price dip slightly, trading at $0.3121 at press time, with a 24-hour trading volume of $17,756,254. Although the token’s price has declined by 1.69% in the last 24 hours and by 3.91% over the past seven days, investors are closely monitoring the token’s performance amidst the legal developments.
Terra Founder Do Kwon to Face Charges in South Korea: ReportSimilarly, LUNC, which is associated with the Terra Luna Classic blockchain, has experienced a different price trajectory. With a price of $0.00007683 and a 24-hour trading volume of $19,345,848, LUNC saw a 9.13% increase over the past seven days, despite a minor 0.97% decline in the last 24 hours. These fluctuations highlight growing interest in the token as the market responds to legal news surrounding Terraform Labs.
The settlement has led to increased speculation on what might come next for both tokens. Terra (LUNA) has a circulating supply of 690 million tokens, giving it a market cap of $214,671,848. Meanwhile, Terra Luna Classic (LUNC) boasts a larger circulating supply of 5.4 trillion tokens and is currently valued at a market cap of $418,703,344. The settlement with the SEC has left many wondering how this legal resolution could affect the future of both tokens and their potential in the market.
