Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar, Token’s Value Surges by Over 9%

April 28, 2023 Bitcoin.com

Terra Supporters Hope to ‘Defy the Odds’ by Pumping the Now-Defunct Stablecoin USTC Back to $1 Parity

November 28, 2022 Bitcoin.com

Biggest Movers: LUNC 13% Higher, as US CPI Boosts Crypto Markets

November 10, 2022 Bitcoin.com

WSJ: Terraform Labs claims case against Do Kwon is ‘highly politicized’

September 29, 2022 Coin Telegraph

Coin Telegraph

A spokesperson for the company behind Terra said it believes prosecutors heeled to public pressure and expanded the definition of a security after its associated cryptocurrencies collapsed.

Terraform Labs, the company behind the development of the Terra (LUNA) blockchain said South Korea’s case against its co-founder Do Kwon has become political, alleging prosecutors expanded the definition of a security in response to public pressure.

“We believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law,” a Terraform Labs spokesman said to The Wall Street Journal on Sept. 28.

South Korean prosecutors issued an arrest warrant for Kwon on Sept. 14 for violations of the countries capital markets laws, but Terraform Labs laid out a defense arguing Terra (now known as Terra Luna Classic (LUNC)) isn’t legally a security, meaning it isn’t covered by capital markets laws.

The spokesman alleged prosecutors of expanding the definition of a security due to intense public pressure from the collapse of Terra and its connected algorithmic stablecoin TerraUSD (UST), now known as TerraClassicUSD (USTC).

“We believe, as do most in industry, that Luna Classic is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted.”

The argument by Terraform Labs’ stems from the unclear regulatory status of cryptocurrencies and the companies who create and issue them.

Currently, capital market and electronic securities' systems in the country don’t include a legal definition of non-standardized securities issued through a blockchain.

The country is moving to regulate the space with its financial regulator, the Financial Services Commission (FSC) preparing guidelines for security tokens by the end of 2022.

A leaked government report in May further revealed South Korea’s plans to roll out a crypto framework by 2024.

Kwon’s whereabouts remain unknown and Terraform Labs did not comment on his location citing physical security risks, but Kwon says he’s not making an effort to hide even after a notice was sent to global authorities by Interpol.

Biggest Movers: LUNC up 40% on Monday, as Do Kwon Faces Possible Arrest

September 26, 2022 Bitcoin.com

Terra Classic Soars as Binance Appeases Crypto’s Lunatics

September 26, 2022 The Crypto Briefing

Biggest Movers: LUNC up 20% on Saturday, XRP Moves Towards 1-Week High

September 17, 2022 Bitcoin.com

Terra back from the dead? LUNA price rises 300% in September

September 11, 2022 Coin Telegraph

Altcoin

The incredible LUNA rally took place amid a flurry of positive and negative events while technicals suggest a correction is coming.

Terra has become a controversial blockchain project after the collapse of its native token LUNA and stablecoin TerraUSD (UST) in May. But its recent gains are hard to ignore for cryptocurrency traders.

LUNA rising from the dead?

After crashing to nearly zero in May, LUNA is now trading for around $6, a whopping 17,559,000% price rally in less than four months when measured from its lowest level.

Meanwhile, LUNA's performance in September is particularly interesting, given it has rallied by more than 300% month-to-date after a long period of sideways consolidation.

*LUNA/USDT daily price chart. Source: TradingView*

Terra ecosystem in September

It is vital to note that LUNA also trades with the ticker LUNA2 across multiple exchanges.

In detail, Terraform Labs, the firm behind the Terra project, divided the old chain into Terra Classic (LUNC) and Terra LUNA 2.0 (LUNA/LUNA2).

Terra Classic is the original version of the Terra blockchain, while Terra LUNA 2.0 was created as a part of a regeneration strategy by Terraform Labs founder Do Kwon. In doing so, Kwon and his team periodically airdrop the LUNA2 tokens to users affected by Terra's collapse.

LUNA/LUNA2 started pumping on Sep. 9, the day on which many things happened inside the Terra ecosystem.

First, Terra Classic (LUNC) passed governance proposals to add a 1.2% tax on all its on-chain transactions on the day. In other words, the proposals will permanently remove 1.2% of the LUNC supply from each on-chain transaction, as Cointelegraph covered here.

Terra Luna Classic (#LUNC) skyrockets >37,000% since its bottom after the Terra collapse

This comes after a proposal to implement a 1.2% token burn tax on all transactions that will enable $LUNC to become a deflationary cryptocurrency.#LUNC ✨ #HaileyLUNC ✨ $LUNC ✨ pic.twitter.com/oIxI7tqVkW
— Hailey LUNC ✳️ (@TheMoonHailey) September 7, 2022

Second, a self-proclaimed Terra whistleblower, FatMan, reported a suspicious transaction worth 435,000 LUNA2 tokens to Binance, alleging that the sender is TerraForm Labs.

“Was eating lunch [and] saw LUNA2 pump. Checked the TFL Dawn wallet. Sure enough, after months of farming rewards with the airdrop they claim they never received, they sent all 435K available LUNA 2 to Binance just days ago. That’s just one address."

.@clayop tallied up the numbers - TFL sent a total of $3.9 billion USD (in UST) to exchanges including Binance and KuCoin.

Let the enormity of that figure sink in, and consider how many people's savings that is added up. Crypto's biggest fraud.

No explanation from @stablekwon https://t.co/qc2kCFPMHW
— FatMan (@FatManTerra) September 9, 2022

However, Do Kwon dismissed the allegations.

The Sep. 9 pump also occurred a week after Terra passed the proposal to conduct its second airdrop of over 19 million LUNA tokens until Oct. 4.

LUNA price technicals lean bearish

From a technical perspective, LUNA's price risks undergoing a massive correction in the coming days.

Firstly, on the four-hour chart, the token's relative strength index (RSI) has jumped above 70, which is considered overbought territory where a correction becomes more likely. Secondly, the price has been forming a rising wedge, a bearish reversal pattern, since Sep. 9.

*LUNA/USDT daily price chart featuring rising wedge breakdown setup. Source: TradingView*

Notably, a rising wedge forms when the price trends higher inside an ascending range whose upper and lower trendlines converge toward one another. It resolves after the price breaks below the lower trendline together with a rise in trading volume.

As of Sep. 11, LUNA was testing its wedge's lower trendline for a potential breakdown move. In this case, the price will risk falling by as much as the wedge's maximum height.

In other words, LUNA could drop to $4.5, down 30% from today's price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.