SEC Charges Terraform Labs, Do Kwon in $Multi-Billion Crypto Fraud
• The SEC recently charged Terraform Labs and CEO Do Kwon with fraud involving a multi-billion dollar crypto asset securities fraud.
• Despite this news, the Terra Luna Classic (LUNC) price has remained relatively stable, although it has dropped 4.5% since the news was announced.
• As LUNC is now community-driven, its future may be brighter than other tokens within the Terra 2.0 network that are still connected to Terraform Labs and Do Kwon.
SEC Charges Terraform Labs and Do Kwon
The U.S. Securities and Exchange Commission (SEC) recently charged Singapore-based blockchain platform 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 asset securities.
Terra Luna Classic Price Response
In response to this news, the price of the community-driven Terra Luna Classic (LUNC) token has dropped by 4.5%. While it is up by 4% in the past week, it is down by 4% in the last 30 days due to general market turbulence.
Analyzing LUNC’s technical indicators reveals that there has been above average selling pressure following the announcement of charges against Terraform Labs and Do Kwon. Its relative strength index (RSI) dropped from 70 a few days ago to just under 40 today, while its 30 day moving average has stalled after looking like it might be climbing back toward its 200 day average.
Potential Impact on Future Price Movement
With negative publicity surrounding Terraform labs now, there is potential for further falls in LUNC’s price if key support levels fail to hold up or if additional penalties or punishments are issued by the SEC against those involved in their alleged fraud activities..
Despite recent bad news concerning those at the helm of Terraform Labs, LUNC remains an independent token that could have potential for growth as plans move forward for its sister stablecoin USTC to re-peg itself within the ecosystem..