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The Terra Luna Classic (LUNC) community has undergone a challenging period since the 2022 market capitulation, which wiped out over $30 billion in a single week. The historical fall of UST logarithmic stablecoins has haunted the Terra LUNC ecosystem despite rebranding to refreshed products in the recent past.
Moreover, the leadership of Do Kwon has largely been questioned, more so with regard to customer protection measures. Additionally, more blockchains and web3 projects have emerged in the last two years, which have implemented better customer protection measures.
Terra Ecosystem Pays Hefty Fines
According to US SEC filings, Terraform Labs and Do Kwon agreed to pay a lump sum of $4.47 billion in fines after reaching a settlement with the agency. In addition to the fines, Kwon is expected to pay about $204 million to ensure the Terraform investors are reimbursed in the ongoing bankruptcy proceedings.
As part of the settlement with the US SEC, Kwon agreed to never hold a leadership position while the company was forced to never undertake any crypto trading operations.
What Next for LUNC Price Action
From a technical standpoint, LUNC’s price against the US dollar is at a critical juncture that could lead to further losses ahead. The small-cap altcoin, with a fully diluted valuation of about $591 million and a daily average traded volume of around $38 million, has never recovered from the 2022 chronicles.
The altcoin has continued to consolidate in a macro triangular pattern, despite the notable network developments. Already, the altcoin has lost the support of the weekly 50 Moving Average (MA) and the Relative Strength Index (RSI) has struggled to rally above the 50 basis point level.
Can Burns Save the Day?
In addition to periodic on-chain burns, the Terra LUNC community has pushed for more burns to bolster bullish prospects. Earlier this month, Binance burned 1.35 billion LUNC, thus cumulative having burned around 60 billion.
Meanwhile, the Terra LUNC community approved a 256 million, worth about $30k, spend for development works earlier this week.