SHOCKING: Do Kwon’s Fraud Exposed! Will Terra Classic’s (LUNC) Price Plummet?

It’s yet another day in Terra land, full of chaos, as the firm copes with misleading chat history, forged documents claims and whatnot! Amidst all this, Terra Classic’s (LUNC) price has taken a toll, currently trading below its moving averages and 52-week highs. This downturn follows a shocking revelation: prominent crypto figure Do Kwon admitted to manipulating the trading volume.

The expose came through a series of text messages between Kwon and Chai founder Daniel Chin. Kwon suggested creating fake transactions to generate fees, with Chin expressing reservations. This revelation emerged amid a U.S. government shutdown and a brewing controversy surrounding leaked chats. 

Will the SEC Step in?

The big question on everyone’s mind is whether the SEC will take action in response to these revelations. But before we delve into that, let’s get a clearer picture of what’s happening with Terra. Read on.

The SEC is currently suing Terraform Labs, accusing the company of misleading investors regarding the stability of its TerraUSD stablecoin. The leaked chat history, given its gravity, cannot be overlooked.

Chats Stir a Controversy

Chai, which initially joined forces with Terra to streamline payment processes, has now found itself at the center of allegations of fraud levied by the U.S. SEC. In response, the SEC has stated that Terra failed to deliver on its promises to users, failing to replace Chai’s payment systems with its own blockchain. This development is particularly noteworthy because Daniel Shin, the founder of Chai, was a co-founder of Terraform alongside Kwon in 2018.

Terra is in Heaps of Trouble

Once a prominent player in the DeFi blockchain arena, Terra experienced a severe downturn in May 2022, ushering in a bear market and causing a series of other projects to declare bankruptcy. Do Kwon has since faced a series of charges from American and South Korean authorities. Earlier this year, he was arrested in Montenegro on charges of document forgery and remains indefinitely detained while fighting extradition to the U.S.

The uncertain future of LUNC raises questions about its viability in the crypto market.

Also Read: Terraform Labs Breathes Sigh of Relief as Class-Action Lawsuit Gets Dropped

Is it All Over for LUNC? 

Terra’s downfall has had a massively negative impact on the crypto market, causing financial distress for projects associated with the ecosystem. Currently, LUNC is trading at $0.000063181, slightly below its 100-day moving average of $0.000074160. In contrast, Terra Classic is trading above its 52-week low at $0.000055776 but below its 52-week high at $0.000361281. However, LUNC’s trading volume in the last 24 hours is lower than its seven-day average, with 20,556,576.26 tokens exchanged.

The numbers are not good and legal cases like fraud may tamper investor sentiments even further.

Read More: Could Terra Classic (LUNC) Price Hit $1? Crypto Expert Weighs In