Terra Classic (LUNC) Faces 20% Price Crash Following Network Upgrade as Founder’s Extradition Looms
Terra Classic (LUNC), the native token of the Terra blockchain, is grappling with a 20% price crash after the recently completed v2.3.2 network upgrade. This setback comes just days after the cryptocurrency experienced a parabolic rise, rallying around 200% over the past month. Despite the optimistic surge, the recent price decline has overshadowed the token and related assets, including Terra Classic USD (UST) and Terra (LUNA).
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Since November 11, LUNC’s price soared from $0.00008355 to $0.000249, marking a significant recovery for investors who weathered the catastrophic collapse of the Terra ecosystem in May 2022. Although LUNC is far from its all-time high of $119, set on April 5, 2022, investors are still hopeful for a recovery, with aspirations of reaching $1. The burning of LUNC tokens, particularly by major platforms like Binance, has contributed to positive sentiment and reinforced investor confidence.
Recent Developments
However, the recent 20% price crash has raised concerns and impacted not only LUNC but also TerraClassicUSD (UST) and Terra (LUNA). UST, the algorithmic stablecoin, experienced a significant de-pegging, leading to a 20% dip in its price from $0.05103 to $0.04079. Simultaneously, the price of Terra (LUNA) dropped from $1.1629 to $0.9366, representing a similar 20% decline.
This downturn follows a notable 30% rally in LUNA’s price over the past month, and now all Terra tokens face selling pressure. The community is closely watching to see if these tokens can sustain their recent gains or if further corrections are on the horizon.
Founder’s Extradition Adds to Turmoil
In a parallel development, Do Kwon, the founder of Terraform Labs, the team behind the Terra blockchain, is facing extradition from Montenegro to the United States. Kwon, under scrutiny since the Terra ecosystem collapse in May 2022, is now dealing with legal challenges that could further impact investor sentiment.
As the Terra ecosystem navigates through price fluctuations and the aftermath of the recent network upgrade, investors are closely monitoring the trajectory of LUNC, UST, and LUNA. The founder’s extradition adds a layer of uncertainty to the situation, making it a critical period for the Terra community and the broader cryptocurrency market. The coming days will reveal whether Terra tokens can weather the storm and maintain their recent gains or if further challenges lie ahead.
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