What Triggered The LUNA and LUNC Prices to Plunge?

14 Sep 2022 By: Anirudh Trivedi
What Triggered The L

The price of Terra (LUNA) and Terra Luna Classic (LUNC) fell after a South Korean court issued an arrest warrant against its founder, Do Kwon, and five others. 

LUNA and LUNC prices have dropped by more than 40% and 20% to $2.88 and $0.000302, respectively.

LUNC and LUNA Price Pump and Dump

Since the Terra-LUNA crash, the price of Terra Classic (LUNC) has increased by almost 37,000%, hitting a high of $0.000588. The Terra community supported the LUNC price surge, which increased daily trading volume to jump over $3.5 billion.

Most of the rally came in September when the LUNC price increased from $0.00016 to $0.00058 as a result of burning, staking, project development, ecosystem education, and governance operations.

Furthermore, the Terra community and TFL accepted the 1.2% tax burn plan. All modifications will have been implemented by September 20. Currently, crypto exchanges such as Binance, Huobi, MEXC Global, KuCoin, Gate.io, and others have announced support for the 1.2% tax burn.

At the time of writing, Terra Classic (LUNC) is trading at $0.00030. The price is expected to increase shortly as the Terra community strives to reach the $0.01 short-term objective. The community has successfully pushed the LUNC price to the $0.00051 target.

After hitting the $0.0005 target on September 8, the Terra (LUNA) price hit a record high of $7.06 on September 9. Despite a daily trading volume of more than $6 billion, the rally faded. The Terra Classic community appears to only support LUNC in the future.

At the time of writing, Terra (LUNA) is trading at $2.87, down more than 40% in the last 24 hours. The daily trading volume has also plummeted below $1.5 billion.

Terra Founder Do Kwon Arrest

South Korean court issued an arrest order for Terra founder Do Kwon and five other individuals. The move came after the Financial and Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutors Office launched a fresh investigation to determine whether Terra tokens are securities. In addition, Terra will be accused of violating the Capital Market Act.

As per South Korean media, prosecutors would cooperate with Interpol to extradite Do Kwon from Singapore.

Read also: Arrest Warrant Out Against Terraform Labs Founder: Report