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Terra Classic Faces Market Turmoil, Rejects Key Proposal, Whales Dumping LUNC and USTC

Terra Classic (LUNC) is currently grappling with the danger of losing its place in the global TOP 100 crypto listings amid a widespread cryptocurrency downturn. This isn’t just a reaction to the market; long-standing disputes within the Terra Classic community have been severely denting the value of tokens in its system for a while now.

One of the central figures in the Terra Classic community, LUNC DAO, has put forward a proposal. He wants to take over the chain’s command. For this to happen, he urged the renowned YouTuber and LUNC holder, Classy Crypto, to transfer his validator node to him.

Read Also: Terra Classic (LUNC) Is Too Decentralized, Community Debates the Need for CEO to Save the Network

Expressing his frustration on the matter, LUNC DAO criticized a specific “disobedient 20%” of the community, emphasizing their preference for collective governance over individual leadership.

In a twist, Classy Crypto later confirmed that he had indeed sold his validator node to LUNC DAO for a sum of $10,000. This move was under the public eye just 3 days earlier when the $LUNC price took a nosedive, largely due to massive sales by crypto whales.

More LUNC Disorders Upcoming?

But the challenges facing Terra Classic don’t just stop there. Another notable figure within the community, Capitan 808, has made a concerning discovery. He found out that several wallets have been discreetly drawing from $LUNC’s liquidity continuously for the past year. Capitan 808 believes that these interconnected wallets have been employing an arbitrage strategy, profiting over $1 million by exploiting this oversight.

Reacting to this revelation, LUNC DAO not only acknowledged the issue but went a step further. He made a bold statement, threatening to expose the crypto wallets of 25 individuals. He described these people as malevolent actors, accusing them of draining the chain’s vibrancy and spirit.

Read Also: Terra Classic (LUNC) TVL Hits All-Time Low, Raising Concerns Over Its Survival

As the community waits to see how these challenges will be addressed, the immediate financial impact is evident. Terra Classic’s market value dipped by 5.5% within 24 hours. However, it’s currently showing signed of resilience with a relatively 4% gain in the last 24 hours. According to CoinMarketCap, LUNC currently occupies the 86th position in the crypto market.

Furthermore, TerraClassicUSD (USTC) hasn’t been immune to this chaos. It witnessed a sharp 6.9% drop, nudging this unstable stablecoin below its crucial support threshold of $0.015.


The Significance?

Despite facing a financial storm in 2022, the Terra blockchain has managed to stay afloat. The primary reason behind its survival is the enduring high demand for its offerings in the crypto space. The unfolding events will surely be watched keenly by stakeholders and enthusiasts alike.

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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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