• The SEC has recently charged Terraform Labs and CEO Do Kwon with fraud involving a multi-billion dollar crypto asset securities scheme.
• In response, the Terra Luna Classic price has dropped 4.5% today and is down 4% in the last 30 days.
• Despite the bad news, LUNC remains up 4.5% in the past week and plans are in motion to re-peg sister stablecoin USTC.
SEC Charges Terraform Labs & Do Kwon
The U.S Securities and Exchange Commission (SEC) has recently charged Singapore-based Terraform Labs PTE Ltd and its CEO Do Hyeong Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto assets securities.
Terra Luna Classic Price Falls
In response to the news, the Terra Luna Classic price has fallen to $0.00016791, with its 4.5% drop today following the news that the SEC is charging Terraform Labs and Do Kwon for fraud. Although LUNC remains up by 4.5% in the past week, it is still down by 4% in the last 30 days amid a turbulent time for the market as a whole.
LUNC Not Directly Affected By Fraud Charges
Despite all of this bad news surrounding Terraform Labs, LUNC isn’t directly affected by these charges given that it is now community driven. With plans currently being put into motion to re-peg sister stablecoin USTC, there could be brighter prospects ahead for LUNC than LUNA Token which was launched by Terraform Labs as part of their revamped network called ‘Terra 2.0’
Indicators Show Negative Response To News
The indicators for LUNC have responded negatively to yesterday’s news with its relative strength index (purple) dropping from 70 a few days ago to just under 40 today indicating above-average selling pressure while its 30 day average (red) seems to have stalled after looking like it might be climbing back towards its 200 day average (blue). This indicates that further falls may occur before it eventually bottoms out meaning that key short term support level at $0.000165 should be watched closely for any potential drops below this point due to negative publicity surrounding Terraform Labs & Do Kwon’s case against them filed by SEC
Possible Penalties For Fraudulent Activity
Although no penalty or punishment has been specified yet by SEC regarding this case against Terraform Labs & Do Kwon but they have been quite clear on their stance on how they view such activities when they state “As alleged in our complaint,the Terraform ecosystem was neither decentralized nor finance – It was simply a fraud propped up by so called algorithmic ’stablecoin‘ – The price of which was controlled by defendants not any code”