The Terra Classic (LUNC) community is in a state of confusion after social investment platform eToro restricted trading of LUNC due to Terraform Labs’ (TFL) Chapter 11 bankruptcy filing. This move has sparked concerns about a broader delisting of LUNC from other cryptocurrency exchanges.
The controversy stems from eToro’s decision to set all tokens issued by TFL to “close-only” status, effectively preventing users from buying LUNC. This action reportedly came after TFL claimed ownership of LUNC, despite the community’s insistence that Terra Classic operates as an independent, community-driven blockchain since the 2022 Terra-Luna crash.
Community members, including prominent figures like VegasMorph and Mr. Diamondhandz, have emphasized that validators and the community govern the Terra Classic chain. They argue that TFL no longer has any control over the network’s infrastructure, updates, or maintenance, as these decisions are made through community voting.
This situation has led the Terra Classic community to demand clarification from both Terraform Labs CEO Chris Amani and eToro. They seek to understand why LUNC is being delisted due to TFL’s bankruptcy, considering the chain’s decentralized nature.
While the delisting news has caused some concern, the price of LUNC has surprisingly remained stable. In the past 24 hours, the LUNC price actually rose by 2%, currently trading at around $0.000087. However, trading volume has fallen by 12%.
Meanwhile, TerraClassicUSD (USTC) has also seen a positive price movement, climbing 5% to reach just above $0.02. Interestingly, trading volume for USTC surged by a significant 66% in the last day, potentially fueled by the recent announcement of TFL reopening the Shuttle Bridge for redeeming wrapped assets on Terra Classic, along with an unclear plan to burn 150 million LUNA.
The coming days will be crucial for the Terra Classic community. Receiving clear explanations from both eToro and Terraform Labs regarding the LUNC delisting is essential to maintaining stability and avoiding a potential domino effect leading to delistings on other exchanges.