- eToro has delisted Terra Luna Classic (LUNC) amid developments in TerraForm Labs’ bankruptcy case, causing outrage within the LUNC community.
- This move, influenced by the Terra vs. SEC settlement, has led to demands for clarification and negatively impacted LUNC’s market price.
Retail stock and crypto platform eToro has made a controversial decision to deactivate trading of Terra Luna Classic (LUNC), sparking outrage within its dedicated community. This move comes amid ongoing developments in TerraForm Labs’ bankruptcy case, which has left many LUNC supporters feeling sidelined.
At the time of press the Luck price is up 1.97% in the last day.
The Fallout from Terra’s Bankruptcy
TerraForm Labs, the parent company of Terra Luna Classic, has recently outlined a timeline for loss claims linked to the May 2022 crisis. In response, eToro has delisted both Terra (LUNA) and LUNC. This decision wasn’t sudden; eToro had issued a warning about the impending close-only status for LUNA tokens, which took effect on July 17, 2024, at 9 AM GMT.
Many believe eToro’s action was influenced by the high-profile Terra vs. SEC case, which concluded with a $4.5 billion settlement. While this settlement might offer a path for LUNA investors to seek reimbursement, the feasibility of such refunds is questionable given TerraForm Labs’ limited digital assets, reportedly under $100 million.
Community Backlash and Validator Demands
A significant point of contention is eToro’s justification for delisting LUNC. TerraForm Labs had previously forked the original product to create Terra 2.0, now known as Terra (LUNA). Since mid-2022, LUNC has operated independently, powered by a loyal community. This community views eToro’s action as unfair and misguided.
Prominent LUNC validators and developers have united to demand clarity from Chris Amani, TerraForm Labs’ current CEO. According to sources, TerraForm Labs staff informed eToro that Terra still owns LUNC, leading to the discontinuation of trading on the U.S.-regulated platform.
There is information that TFL told officials of the @eToro social investment network that they own #LUNC.
— Crypto News Portal (@TerraNewsEN) July 23, 2024
▪️eToro officials; “He says that TFL told them that they own LUNC and that is why 78 thousand LUNC holders can no longer buy LUNC from eToro.”
▪️Vegas, one of the Terra… pic.twitter.com/sTCeNVvspK
Vegas Morph, a seasoned LUNC validator, has publicly challenged this assertion, directly addressing Chris Amani: “Can you please tell eToro that you do not own the chain?” This message quickly gained traction across Terra Luna Classic’s social media channels, with the community eagerly awaiting answers from both parties.
Market Impact on LUNC
Unsurprisingly, these developments have negatively impacted LUNC’s price. The altcoin dropped by 6.2%, trading at $0.00008188 at press time. Despite a substantial rally last week that saw LUNC reaching a high of $0.00009299, the coin failed to reclaim a $500 million global market cap for the fifth consecutive day.
The fallout from eToro’s decision and the ongoing uncertainties surrounding TerraForm Labs’ bankruptcy case continue to cast a shadow over LUNC’s future. As the community rallies for transparency and fairness, the broader cryptocurrency market watches closely, eager to see how this saga unfolds.
