Terra LUNA is not a security according to South Korean regulators, here’s how LUNC price will likely react
- Terra ecosystem’s LUNA coin is not a security according to South Korea’s Seoul Southern District Court.
- South Korean regulator’s stance could negatively influence LUNC holders' awaiting a recovery of lost funds and result in bearish sentiment.
- The LUNA Classic community is working on repegging the USTC token with massive support from LUNC holders for revival of the ecosystem.
Terra ecosystem’s LUNA token, now rebranded as LUNC is not a security, according to regulators in South Korea. The authorities’ decision influenced LUNC holder community as traders are awaiting a recovery of their lost funds.
The LUNC community has been actively working on a proposal to re-establish USTC peg and begin a recovery for the ecosystem.
Also read: Here’s how Ethereum could recover its losses since Shapella with massive deposits
LUNA Coin is not a security: South Korean regulators
South Korea’s Seoul Southern District Court rejected the prosecution's claims in its recent hearing. Authorities argued that LUNA Coin is not a security. In the previous trials in South Korean courts, cryptocurrencies have not been considered securities and virtual assets have not been regarded as financial investment products according to the Capital Market Act.
Colin Wu, a Chinese reporter shared the progress of the hearings in a recent tweet:
According to Korean media ilyo, South Korea’s Seoul Southern District Court rejected the prosecution’s claim that Luna Coin is a security. In most of the previous trials of South Korean courts, cryptocurrencies were not considered securities and could not be regarded as financial…
— Wu Blockchain (@WuBlockchain) April 24, 2023
Since Luna Classic, or LUNC token is a rebrand of the original LUNA token, there is a likely impact on LUNC holders and the community. LUNC has yielded 13.5% losses over the past week, since April 17.
The news of authorities’ stance on LUNA Coin is expected to negatively impact sentiment among LUNC holders and fuel a bearish thesis for the asset.
LUNC community continues work on re-establishing USTC peg
The LUNA Classic community is on track to re-establish USTC peg and revitalize the Terra Classic ecosystem through a new implementation, buyback and swaps. The proposal was first shared on April 11, since then it has garnered support from LUNC community of holders.
Latest update on Terra community proposal
LUNC price could remain under pressure, as the community awaits an outcome of the lawsuit in South Korea’s Seoul District Court. LUNC price could nosedive to support at $0.000107, in the event of further decline.
As seen in the price chart below, LUNC is trading below the 50-day and 200-day Exponential Moving Averages (EMAs). If LUNC price nosedives to support at $0.000107, the bearish thesis will be validated.
LUNC/USDT 4H price chart
If LUNC price climbs above the 50-day EMA, it would invalidate the bearish thesis.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
