In a dramatic turn of events, Crypto.com has officially removed Terra Classic (LUNC) from its trading platform. This decision comes hot on the heels of Terra Labs’ announcement of bankruptcy, sending shockwaves through the cryptocurrency community.
Immediate Market Impact
The delisting news, which was disseminated to investors via email, set off a 12.4% decline in the value of LUNC within the last day. Scheduled for February 15, the delisting was initially met with skepticism due to the lack of prior official announcements, raising concerns about the possibility of email fraud.
Confirmation Amidst Confusion
Crypto.com later confirmed the delisting of Terra Classic, albeit without a formal statement on their website or social media outlets. This confirmation came shortly after Terraform Labs, the creators of Terra Classic, sought Chapter 11 bankruptcy protection in a U.S. court.
A Look at Terraform Labs’ Bankruptcy
The bankruptcy filing by Terraform Labs occurred on a Sunday, with disclosed assets and liabilities ranging between $100 million to $500 million. The company has expressed its commitment to fulfilling its financial responsibilities to employees and vendors during the bankruptcy proceedings, without the need for additional financing. They also plan to continue their expansion of services during this period.
Recent Price Rally and Subsequent Decline
Before this downfall, Terra Classic had experienced a notable price surge at the end of November, with a 42% increase in its value over 24 hours. Its market cap soared to $661 million, accompanied by a daily trading volume of $513 million. However, as of the latest updates, the market cap for Terra Classic has fallen by over 10.5% to $567 million, with the trading volume plummeting nearly 89% to $57 million.
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