- The upcoming Terra Classic chain upgrade aims to introduce IBC-Hooks, potentially revitalizing the ecosystem amidst regulatory challenges.
- Market indicators suggest a bearish trend for LUNC, yet a potential bullish reversal looms if key resistance levels are overcome.
The recent downturn in Bitcoin’s value, dipping below the $70K threshold, has sent ripples through the cryptocurrency market. Among the affected is Terra Classic (LUNC), which experienced a sharp 32% fall, now trading at a mere $0.00013.
This drop, triggered by resistance at a challenging selling point, hints at potential future upheavals not just for LUNC but the wider crypto sector.
Legal Challenges Loom for Terra Classic
The Terra Luna Classic ecosystem finds itself on uncertain ground as Terraform Labs gears up for a significant legal confrontation with the U.S. Securities and Exchange Commission (SEC). Set for March 25, this hearing is particularly pivotal, considering Terraform Labs’ founder, Do Kwon, is entangled in extradition proceedings in Montenegro.Â
With Kwon likely absent from the proceedings, his legal team will be tasked with this juncture, which could redefine regulatory perceptions of Terra Luna Classic and its affiliated initiatives.
A Dual-Threat to Stability
Terra’s ecosystem stands at a critical crossroads, with two key developments on the immediate horizon. The imminent courtroom battle involving Terraform Labs and the SEC takes center stage, spotlighting Do Kwon, whose legal predicaments in Montenegro may prevent his court attendance.
Compounding the situation is the anticipated extradition of Kwon to South Korea shortly after March 23, introducing further complexity. Concurrently, the Terra Classic network is poised for an upgrade designed to integrate IBC-Hooks, a move unanimously decided to bolster decentralized application (dApp) integration.
Upgrade Amidst Legal Scrutiny
As Terra Luna Classic readies for its chain upgrade on the same day as the SEC hearing, as we wrote in ETHNews, anticipation grows. This technological advancement, focused on implementing IBC-Hooks, marks a significant stride for Terra amidst its ongoing legal battles. It aims to enrich the ecosystem, potentially marking the beginning of a revitalized phase for Terra Luna Classic.
Despite facing formidable challenges, the Terra Luna Classic community and its developers remain steadfast in their commitment to rejuvenate and propel the project forward.
