The crypto world is buzzing with the latest development surrounding Terra Luna Classic (LUNC). Popular trading platform eToro has decided to delist LUNC, sending ripples of discontent through the dedicated LUNC community. But why has this move ignited such a strong reaction, and what does it mean for the future of Terra Luna Classic? Let’s dive into the details of this unfolding drama.
eToro Drops the LUNC Bomb: What Happened?
Here’s a quick rundown of the key events that led to the LUNC community’s current state of agitation:
- eToro, a platform that recently received approval to operate in the UAE, announced its decision to delist Terra Luna Classic (LUNC). This move immediately drew criticism from the LUNC community.
- The exchange cited developments in TerraForm Labs’ bankruptcy proceedings as the primary reason behind delisting LUNC and its associated token, Terra (LUNA).
- Adding fuel to the fire, LUNC validators are now publicly demanding answers from TerraForm Labs CEO, Chris Amani, questioning the rationale behind eToro’s decision.
The LUNC community didn’t hold back their feelings, expressing their disappointment and disagreement with eToro’s action. As one community member voiced on Twitter, the sentiment is clear: they believe eToro’s move is unwarranted, especially considering the community-driven nature of LUNC post-TerraForm Labs crisis.
🚨 BREAKING 🚨
Major Exchange @eToro has decided to DELIST $LUNC!
No official statement has been made, but they are claiming it's because of the bankruptcy of $USTC and $LUNA.
This is absolutely outrageous and completely unacceptable!
Terra Classic is a COMMUNITY chain and has… pic.twitter.com/l0t30lP8xU
— Terra News 🌕 (@TerraNewsEN) July 29, 2024
This decision comes shortly after TerraForm Labs announced a timeline for loss claims related to the dramatic events of May 2022. eToro’s response was to delist both LUNA and LUNC, seemingly grouping them together under the umbrella of TerraForm Labs’ legal troubles.
Why the Fury? Unpacking eToro’s Delisting Decision
eToro’s decision wasn’t out of the blue. Users received an update regarding LUNA tokens, signaling an impending ‘close-only’ status which came into effect on July 17, 2024. However, the application of this to LUNC is where the controversy truly lies.
The underlying reason for delisting both tokens appears to be the ongoing legal battle between TerraForm Labs and the SEC, which recently concluded with a significant $4.5 billion settlement. While this settlement offers a potential path for LUNA investors to recoup some losses, the reality of reimbursement remains questionable. TerraForm Labs’ publicly disclosed digital asset holdings are reportedly less than $100 million, casting doubt on the feasibility of such a large-scale refund plan.
BREAKING: eToro Exchange to DELIST $LUNC 🚨 @eToro
This is due to the bankruptcy of $USTC and $LUNA and is due to the SEC settlement.
This is the most ridiculous thing I have ever heard. $LUNC is NOT @terra_money anymore!
This is a community ran chain.
eToro are clueless. pic.twitter.com/W666b7gW6g
— Mr. Diamondhandz💎🙌Soon LUNC Whale🐳 (@MrDiamondhandz1) July 29, 2024
The crucial point of contention is the distinction between LUNA and LUNC. After the original Terra ecosystem’s collapse, TerraForm Labs forked the blockchain, creating Terra 2.0, which now trades as LUNA. Terra Luna Classic (LUNC) is the original chain, now maintained and driven by its community – a vital distinction that LUNC holders feel eToro is overlooking.
“We Are Not TerraForm Labs!” – LUNC Community Demands Clarity
Since mid-2022, Terra Luna Classic has been under the stewardship of a passionate and dedicated community. They view eToro’s action as not only unfair but also as a fundamental misunderstanding of LUNC’s current status. This has led to a unified front from prominent LUNC validators and developers, who are now directly appealing to Chris Amani, CEO of TerraForm Labs, for answers.
The core of the issue seems to stem from information, allegedly from TerraForm Labs staff, suggesting to eToro that TerraForm Labs still ‘owns’ LUNC. This perceived ownership claim is the likely justification eToro is using to extend the delisting from LUNA to LUNC, especially given eToro’s regulatory obligations in the US and other jurisdictions.
Vegas Morph, a well-known LUNC validator, directly addressed Chris Amani, stating emphatically, “Can you please tell eToro that you do not own the chain?” This message has rapidly spread across LUNC social media channels, amplifying the community’s demand for clarification from both eToro and TerraForm Labs.
Price Plunge and Market Uncertainty
Unsurprisingly, the news of eToro’s delisting has negatively impacted LUNC’s price. The altcoin experienced a 6.2% drop, trading at $0.00008188 at the time of writing. This downturn follows a recent relief rally that pushed LUNC to weekly highs of $0.00009299. However, despite this rally, LUNC has struggled to regain a $500 million global market cap for the past five days, highlighting the fragile market sentiment surrounding the token.
As of now, neither eToro nor Chris Amani from TerraForm Labs has publicly addressed the LUNC community’s concerns or provided a clear explanation for the delisting decision. This silence is only adding to the community’s frustration and uncertainty.
Déjà Vu? Echoes of Crypto.com’s LUNC Delisting Attempt
Interestingly, this isn’t the first time a major crypto exchange has considered delisting LUNC. Earlier this year, Crypto.com, another prominent American crypto exchange, issued a delisting warning for LUNC. However, in a move that offers a glimmer of hope for the LUNC community, Crypto.com reversed its decision following significant backlash from LUNC holders. This precedent raises the question: could eToro potentially reconsider its stance?
What’s at Stake for LUNC Holders on eToro?
eToro is a significant player in the crypto exchange space, operating in over 100 countries with a massive user base of 35 million. The delisting issue on eToro directly affects approximately 78,000 LUNC holders, effectively disabling their ability to trade LUNC on the platform. For these users, the stakes are high, and the community’s fight to reverse this decision is crucial.
The Road Ahead for LUNC and eToro
The situation remains fluid. The LUNC community is clearly not backing down and is actively pushing for a reversal of eToro’s decision. Whether eToro will follow Crypto.com’s example and reconsider, or if TerraForm Labs will clarify its position on LUNC ownership, remains to be seen. One thing is certain: the resilience and determination of the Terra Luna Classic community are being put to the test once again. The coming days will be critical in determining the outcome of this exchange delisting saga and its impact on the future of LUNC.
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