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SEC Says Jump Trading Secretly Propped Up Do Kwon’s TerraUSD

Terra Classic Community Efforts Fuel Bullish Rise for LUNC and USTC

Algorithmic stablecoin TerraClassicUSD (USTC) has received a massive boost in the last 24 hours, posting over 283% gains within the period. As of publication, CoinMarketCap data showed the USTC price standing at $0.6279, as it continues to make an impressive effort toward reclaiming its peg to the US dollar.

Recall that the USTC stablecoin lost its dollar peg back in May 2022. Since then, Terra Classic Labs (TCL) has put in place a recovery model that may now just be proving successful.

Why Is USTC Stablecoin Surge? A surge as high as seen in USTC’s ongoing rally certainly begs some questions. And an X user identified as Trader QT, has attempted to shed more light on it. Trader QT, who claims to be an Official Partner of Luna Classic Labs, revealed that TCL recently acquired 25.6 million USTC for about $500,000. That is at an average price of $0.021 per USTC. Per the source, TCL made the strategic investment as part of its Treasury Reserve Policy.

So, while the purchase was enough to send USTC prices to the moon, it also may have just revived the entire Terra Classic ecosystem.

Interestingly, the surge in USTC’s value has also rubbed off on its sister token Terra Classic (LUNC). As of publication, LUNC was seen feeding off the ongoing USTC rally. It had added an over 57% gain of its own in the last 24 hours to stand at $0.0001237.

For what it’s worth, the recent price surges seen in both the USTC and LUNC, once again highlight the undying resolve and commitment of the Terra Classic community to bring value to both assets. But more importantly, it also showcases the height of influence that community action can exert in shaping digital asset trajectories, albeit on a broader scale.

Overall, there is now positive sentiment around the recovery of both assets after what seemed like an actionless past week.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

Mayowa Adebajo on X

Do Kwon detention extended in Montenegro after report of likely extradition: Bloomberg

Terraform Labs, the entity responsible for the now-defunct TerraUSD (UST) stablecoin, has initiated bankruptcy proceedings in the United States.

The company filed for Chapter 11 bankruptcy protection at the United States Bankruptcy Court for the District of Delaware, indicating estimated liabilities and assets ranging from $100 million to $500 million, as per a January 21 filing.

In a separate statement, Chris Amani, the CEO of Terraform Labs, stated, “The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding.

We have overcome significant challenges before and, against long odds, the ecosystem survived and even grew in new ways post-depeg; we look forward to the successful resolution of the outstanding legal proceedings.”

According to the bankruptcy filing, the defunct company’s liabilities and assets both fall within the range of $100 million to $500 million.

READ MORE: Bitcoin ETFs: Game Changer or Threat to Crypto’s Core Principles?

This development comes just four days after the U.S. Securities and Exchange Commission (SEC) granted a postponement of Kwon’s upcoming fraud trial until March 25 in response to a request from his legal team.

The Terra ecosystem, overseen by Kwon, experienced a collapse in May 2022.

Following the firm’s implosion, the whereabouts of its co-founder remained unknown until he was apprehended in Montenegro in March 2023 for attempting to use forged travel documents to leave the country.

The SEC initially filed civil charges against Terraform Labs and Kwon in February 2023, accusing both parties of orchestrating a “multi-billion dollar crypto asset securities fraud” linked to the tokens previously known as UST and Terra (LUNA).

The United States and South Korea are both seeking Kwon’s extradition, sparking speculation that he could face multiple sentences in both nations.

Should Kwon be extradited to South Korea, he might potentially confront a 40-year imprisonment sentence in the country where the majority of his alleged crimes were committed.

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The world’s largest crypto exchange Binance expands support for key cryptocurrencies including SingularityNET (AGIX), Shiba Inu (SHIB), TerraClassicUSD (USTC) and others. Notably, Binance will adjust the tick size of trending spot trading pairs to increase market liquidity and improve trading experience by next week.

Binance Expands Support For SHIB, USTC, AGIX Binance in an official announcement said it will adjust the tick size for some listed cryptocurrencies via API by May 23 at 05:00 UTC. The crypto exchange cites increasing market liquidity and improving trading experience as the reasons behind the move.

“The tick size update will not affect existing spot orders. After the tick size is updated, orders placed before the update will still be matched with the original tick size,” as per the announcement.

The tick size is decreased for AGIX/FDUSD, AGIX/TRY, AGIX/USDT, ALT/BNB, ALT/FDUSD, ALT/TRY, ALT/USDC, ALT/USDT, ARKM/BNB, ARKM/FDUSD, ARKM/TRY, ARKM/TUSD, ARKM/USDT, EDU/USDT, FET/FDUSD, FET/TRY, FET/USDC, and FET/USDT.

Whereas, the tick size is increased for ID/TRY, ID/USDT, REN/USDT, SHIB/TRY, STX/FDUSD, STX/TRY, STX/USDC, STX/USDT, TRX/TRY, TRX/XRP, USTC/FDUSD, USTC/TRY, USTC/USDT, VANRY/USDT, XAI/BNB, and XAI/TRY.

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SHIB, USTC, AGIX Saw Price Increase SHIB price jumped 2% in the past 24 hours and 12% in a week, with the price currently trading at $0.000025. The 24-hour low and high are $0.0000242 and $0.0000253, respectively. However, the trading volume has decreased by 50% in the last 24 hours.

USTC price climbed over 4% in the last 24 hours with the price currently trading at $0.02244. The 24-hour low and high are $0.02157 and $0.02283.

Meanwhile, AGIX price has increased by 7% in the past 24 hours. The price currently trades at $0.980, with a 24-hour low and high of $0.912 and $0.989, respectively.

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Terraform Labs (TFL) has executed a large-scale token burn of 251 billion Terra Luna Classic (LUNC) and 264 million TerraClassicUSD (USTC) tokens from circulation. The burn was part of a settlement with the U.S. Securities and Exchange Commission (SEC) that required TFL to dispose of specific assets held in its Shuttle Bridge wallets. 

This move has fueled speculations of a potential rally in the LUNC price, sparking discussions in the crypto community about the possibility of LUNC reaching the $1 mark.

Terra Luna Classic Burns LUNC and USTC Holdings According to an update on X (formerly Twitter), the recent burn event is linked to TFL’s decision to permanently shut down the Shuttle Bridge, a cross-chain transfer solution for Terra Classic tokens. As a precautionary measure and to avoid any legal complications, TFL closed the bridge on the 31st of October, 2024. In the US SEC settlement, TFL committed to destroying the tokens stored in the Shuttle Bridge wallets with a view to meeting regulatory requirements.

The burn took out around 4% of the LUNC supply, which stands at around 5.45 trillion tokens.

Although this could be seen as significant when looking at the numbers, market experts posit that this could be insufficient to make the prices skyrocket due to lack of enough demand. TerraClassicUSD (USTC) also received a significant reduction with its 264 million tokens burnt while this accounts for a lesser part of its 5.56 billion circulating supply.

LUNC and USTC Price Reaction Despite the substantial reduction in circulating supply, the market reaction has been restrained. LUNC price saw an increase of 3%, while USTC price rose by 1.70%, according to CoinMarketCap data. 

Analysts attribute the limited price movement to the overall large supply of these tokens, as the recent burn represents only a fraction of the total amount in circulation.

‘It’s a good thing that supply is down, but since there are still billions still in circulation it’s doubtful this will have much effect on prices,’ said a market analyst. This relative calm suggests that although burns can cut down on supply, token utility and consumer appetite are needed for more significant gains.

While the immediate price impact was limited, technical indicators suggest the possibility of a future uptrend. Analysts have identified a “falling wedge” pattern on LUNC’s price chart, a formation that typically signals a bullish reversal. This pattern forms when prices oscillate between converging trendlines, often hinting at a potential breakout.

LUNC/USD 1-day price chart (Source: TradingView) Support levels for LUNC are currently around $0.000083572, where strong buying interest has been observed. Resistance within the pattern is gradually decreasing, pointing to diminishing bearish sentiment. 

If LUNC breaks through the upper trendline, some analysts believe it could aim for a target price around $0.0001, potentially setting the stage for further gains if market conditions align.

Ongoing Community and Exchange Initiatives The Terra Luna Classic community has continued to support the ecosystem with additional burn initiatives and tax reforms. Binance has also been contributing to the burn efforts. In its 27th batch of LUNC burns, Binance recently eliminated over 1 billion tokens from circulation. With these contributions, the total LUNC burned by the community now stands near 137 billion.

Furthermore, the community recently approved a new tax proposal aimed at simplifying transactions on the Terra Classic blockchain.

This “Reverse Charge” tax mechanism is designed to streamline how taxes are deducted, making it easier for both users and developers to engage with the platform. These community-driven efforts demonstrate an ongoing commitment to boosting LUNC’s value, though the path to $1 remains uncertain.

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