The post Terraform Labs’ Bankruptcy Hearing Sparks LUNA and LUNC Price Rally appeared first on Coinpedia Fintech News
LUNA and LUNC prices briefly moved upward following a crucial announcement from Terraform Labs. LUNA is trading at $0.3289, reflecting a 0.50% increase, while LUNC climbed 2% to $0.000082. The surge in trading volume suggests growing interest among traders as the company prepares for significant developments.
But what’s causing the surge today? Read on.
Terraform Labs Sets September 19 for Bankruptcy Hearing
Terraform Labs (TFL), the company behind the Terra ecosystem, revealed that the Chapter 11 bankruptcy hearing for Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled for September 19 at 10:00 AM ET. This hearing marks a pivotal step in the company’s reorganization plan, which has been in progress since the Chapter 11 filing in January. The firm previously reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) in June.
Terra Plans to Reopen Shuttle Bridge and Burn Tokens
As part of the reorganization plan, Terra will reopen the Shuttle Bridge, allowing users to redeem wrapped assets on Terra Classic. Tokens in TFL and Luna Foundation Guard (LFG) wallets will be burned after the redemption period, which lasts 30 days. Any unclaimed crypto assets will be permanently removed from circulation. This move is expected to impact LUNA and LUNC prices positively, as the reduction in circulating supply could boost market sentiment.
LUNA and LUNC Price Analysis
Following the announcement, LUNA’s price jumped 2% momentarily, with trading volumes increasing by 17%, indicating renewed interest among traders. Similarly, LUNC saw a 2% rise, and trading volumes spiked by 38%, suggesting that investors are reshuffling their positions amid a broader crypto market selloff. The reopening of the Shuttle Bridge and the token burn could provide further support for these price increases in the near term.
Other Developments
In parallel news, Gemini has announced the delisting of Terra Luna Classic (LUNC). Starting September 20, users will no longer be able to trade LUNC on the platform. Gemini advises users to withdraw their LUNC to external wallets. The exchange stated that the decision came after a reassessment of the assets listed on their platform, sparking debate in the crypto community over whether the delisting referred to LUNC or wLUNA, as the exchange used both terms interchangeably without clarification.
Also Check Out: Binance Delisting News: Major Cryptos Dropped Amid Market Efficiency Drive
What are your predictions for the future of Terra Classic LUNC?