- Retail stock and cryptocurrency platform eToro has disabled trading of Terra Luna Classic.
- eToro made its decision based on the progress of Terra’s bankruptcy case.
- LUNC Validators Put Pressure on TerraForm CEO, Demand Answers
The community of the Terra Luna Classic (LUNC) blockchain has expressed its disdain for eToro’s actions in the wake of TerraForm Labs’ bankruptcy proceedings. TerraForm Labs, the parent company of Terra Luna Classic, recently released a timeline for claims of losses related to the ecosystem crisis in May 2022. eToro has decided to delist both associated tokens, Terra (LUNA) and LUNC.
Why eToro’s Delisting Outraged LUNC Holders
eToro’s move to disable LUNC purchases on its platform was not voluntary. eToro’s update on the LUNA token warned of an impending closed-only status that would take effect from 9:00 AM GMT on July 17, 2024.
However, a common misconception about this update still remains unanswered: the move to remove LUNC and LUNA tokens stems from the famous Terra vs. SEC case, which was settled for $4.5 billion.
This provides a way for LUNA investors to potentially receive a refund, but it is unclear how realistic this refund plan is given that TerraForm Labs has less than $100 million in disposable digital assets in its public wallets.
However, there is a major discrepancy in eToro’s move to remove LUNC. The chain’s distributor, TerraForm Labs, forked the original product and launched Terra 2.0, which is now known as Terra (LUNA).
Terra Luna Classic Members Blame Terra CEO
Since mid-2022, LUNC has been driven by a loyal community that has viewed eToro’s actions as unfair. As a result, prominent LUNC validators and developers have banded together to demand answers from Chris Amani, now CEO of TerraForm Labs.
According to a person familiar with the matter, TerraForm Labs employees told eToro executives that Terra still owned LUNC, which led to LUNC being suspended from trading on U.S.-regulated stock and cryptocurrency exchanges, just like LUNA.
Veteran LUNC validator Vegas Morph tagged the parties involved in the dispute and approached Chris Amani directly: “Can you please tell eToro that you do not own the chain?” The message quickly spread across Terra Luna Classic’s social media channels as the community demanded answers from both sides.
Naturally, these developments have not been good for the price of LUNC, which has fallen 6.2% to trade at $0.00008188 at the time of writing. Moreover, despite a significant relief rally last week to break the weekly high of $0.00009299, LUNC has failed to regain its global market cap of $500 million for the fifth consecutive day.
On the other side
- So far, neither eToro staff nor TerraForm Labs’ current CEO Chris Amani have commented on the decision.
- Earlier this year, another U.S. cryptocurrency exchange, Crypto.com, warned users to delist LUNC.
- However, following a backlash from LUNC holders, Crypto.com withdrew its delisting plans.
Why this matters
The eToro cryptocurrency and stock exchange operates in over 100 countries and has a user base of 35 million. The eToro issue has left approximately 78,000 LUNC holders unable to trade LUNC.
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