The LUNC price continued its strong downward trend on Friday, erasing most of the gains it made earlier this month as traders waited for Do Kwon’s sentencing. Terra Luna Classic token fell to a low of $0.00003792, much lower than this month’s high of $0.00008056.
Jump Trading sued for the Terra collapse
The LUNC price has crashed in the past few days, a trend that continued after Jump Trading was sued for its role in Terra’s collapse. In an X post, the administrator overseeing Terraform Labs bankruptcy said that it had sued Jump Trading.
The lawsuit alleges that the Chicago-based trading company caused or accelerated the collapse of Terra and its ecosystem. It did that using market manipulation, self-dealing, and misuse of assets.
The lawsuit is seeking to recover $4 billion from Jump Trading, one of the biggest players in algorithmic and high-frequency trading globally.
Jump Trading has always been accused for causing the Terra collapse in 2022. The allegation is that the company propped up the stablecoin’s peg through secret deals and then profited when it collapsed.
It had allegedly accumulated millions of LUNA tokens, which it bought at a discount and then dumped, making over $1 billion in profits.
Details of the lawsuit against Jump come a week after a US judge sentenced Do Kwon to prison for 15 years, much higher than what prosecutors were asking. Kwon’s lawyers were seeking five years in prison, pointing to his long stay in prison and the fact that he pleaded guilty, avoiding a lengthy trial.
In his statement, the judge overseeing the case cited the magnitude of Kwon’s crimes and the fact that millions of people were affected.
Do Kwon is also facing criminal charges in South Korea, his home country, where he may spend decades in prison.
Terra Luna Classic became a community project
Terra Luna Classic is the remnant of what was once one of the biggest players in the crypto industry. It has become a community project, where members regularly vote on key issues.
For example, the community passed the v3.6.1 upgrade with a turnout of 72.6%. The members also voted in favor of Agora, which will become the official forum for the network.
The community is now voting for the Lunc forex genesis and EUTC repeg. This vote has already passed with a 70% threshold.
Terra Luna Classic also benefits from its burning, which has accelerated in the past few months. It incinerated over 1.1 billion tokens in the last seven days, bringing the total burns to 429 billion. This burn has led to a 6.47 trillion circulating supply.
LUNC price technical analysis
The daily chart shows that the Terra Luna Classic price has been in a strong bearish trend. It has moved from a high of $0.00008056 to the current $0.00003800.
The token also crashed below the important support level at $0.000050, its lowest level in February, April, and June this year. It has moved below all moving averages.
Therefore, the token will likely continue falling as traders target the next key support level at $0.00002488, its lowest point on December 1, followed by $0.000015, the year-to-date low.
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