LUNA and LUNC prices briefly spiked following a crucial announcement from Terraform Labs. LUNA is trading at $0.3289, reflecting a 0.50% increase, while LUNC rose 2% to $0.000082. The increase in trading volume suggests growing interest among traders as the company prepares for major developments.
But what is causing the current peak? Read on.
Terraform Labs Sets September 19 for Bankruptcy Hearing
Terraform Labs (TFL), the company behind the Terra ecosystem, revealed that the Chapter 11 bankruptcy hearing for Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled for September 19 at 10:00 AM ET. This hearing marks a crucial step in the company’s reorganization plan, which has been underway since its Chapter 11 filing in January. The company previously reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) in June.
Terra plans to reopen the Shuttle Bridge and burn tokens
As part of the reorganization plan, Terra will reopen the Shuttle Bridge, allowing users to redeem wrapped assets on Terra Classic. Tokens in TFL and Luna Foundation Guard (LFG) wallets will be burned after the redemption period, which lasts for 30 days. All unclaimed crypto assets will be permanently removed from circulation. This move is expected to have a positive impact on LUNA and LUNC prices, as the reduction in circulating supply could boost market sentiment.
LUNA and LUNC Price Analysis
Following the announcement, LUNA’s price briefly surged 2%, with trading volume increasing by 17%, indicating renewed interest among traders. LUNC similarly saw a 2% surge, with trading volume increasing by 38%, suggesting that investors are rebalancing their positions amid a broader crypto market sell-off. The reopening of the Shuttle Bridge and the token burn could provide further support for these price gains in the near term.
Other developments
In related news, Gemini announced the delisting of Terra Luna Classic (LUNC). As of September 20, users will no longer be able to trade LUNC on the platform. Gemini advises users to withdraw their LUNC to external wallets. The exchange stated that the decision came after a reassessment of the assets listed on their platform, which led to a debate in the crypto community as to whether the delisting pertained to LUNC or wLUNA, as the exchange used both terms interchangeably without clarification.
Also See: Binance Delisting News: Major Cryptocurrencies Drop Amid Market Efforts
What are your predictions for the future of Terra Classic LUNC?
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