KuCoin Undelegated 48 Billion LUNC Causing Massive FUD On Terra Classic Network
KuCoin Exchange, a significant Terra Classic Token (LUNC) validator, has undelegated about 48 billion of the token, dropping to 44th on the validator list. The abrupt event caused massive fear, uncertainty, and disturbance in the Terra Classic community as rumors of an incoming dump spread.
KuCoin Undelegate 48 Billion LUNC
In May 2022, Terra Network crashed, causing massive losses for investors who held either its twin coins, LUNA, or its UST stablecoin. To compensate victims of the crashed network, a few members of the Terra network team launched the Terra Classic token, LUNC.
As one of the leading crypto exchanges worldwide, top digital assets custodian, KuCoin, supported the Terra Classic network by becoming one of its top validators. In addition, KuCoin held about 48 billion LUNC tokens.
Thus, giving it significant voting power in the community. However, on Friday, KuCoin reportedly undelegated all of its LUNC holdings. Consequently, the exchange’s rank among other validators dropped drastically to 44th.
Also, its voting power declined to 0.22%. More importantly, the exchange’s action is causing massive panic in the market as experts predict an enormous dump and price decline of the LUNC token.
KuCoin’s Action Causes Panic In Terra Community
At the time of publication, the report did not reveal the reason for the sudden action of the giant crypto custodian. Many speculated that the exchange might burn the undelegated tokens, while others believe a massive token dump is imminent.
In addition, some speculators suggest that the exchange’s action might be part of the centralized exchange’s restructuring procedure. Despite the rumors, KuCoin is yet to comment on the matter.
However, it is worth noting that the custodian is yet to execute the second LUNC airdrop round to victims of the crashed LUNA and USTC victims.
Due to these uncertainties, many LUNC holders are panicking, fearing the exchange’s action might spell doom for them. A report claims that some users are already transferring their funds to Binance.
Meanwhile, top developers on the Terra Classic chain proposed the creation of a Joint Layer-1 Task Force group. According to the proposal, the team would build and manage all Layer 1 initiatives on the Terra Classic network. However, the proposal is still under review.
LUNC’s Price Decline After Massive Gain
Interestingly, about a week ago, LUNC broke out of a three-month-long price decline, rising by 50%. However, a few days later, the token recorded intense selling pressure. The selling pressure was so much that the Binance exchange suspended LUNC withdrawals from its platform.
Thus, LUNC dropped all its 50% gains from the previous week. Currently, LUNC trades at $0.000148, according to Coingecko data.
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