Terra-related tokens have fallen an average of 5% over the past 24 hours following the US Securities and Exchange Commission (SEC) charges against Terraform Labs and Do Kwon, according to CryptoSlate data.
SEC Labels Terra Token Securities
February 16th ComplaintThe SEC asserted that Terra’s failed algorithmic stablecoins TerraUSD (USTC), LUNC (formerly Terra Luna), and Wrapped LUNA Classic (WLUNC) are securities under the U.S. Securities Act.
Financial regulators also alleged that Terraform Labs violated securities laws in launching the Mirror Protocol (MIR). According to the SEC, MIR now allows users to create mAssets that configure security-based swaps.
The SEC added that the wrapped version of Luna is also security.
“wLUNA is also a security receipt because it is a security receipt.”
Terra token dump
Terra-related tokens lost their value in the last 24 hours after the revelation.
USTC plunges 7.23% to $ during reporting period0.02852. Since losing the USD peg in May 2022, community members have failed to help restore its value through various suggestions.
LUNC fell 4% during the reporting period to $At 0.00017, it is 100% below the previous high of $104.73. The sale also took him below $1 billion in market capitalization and now he’s at $993.2 million.
Meanwhile, the ecosystem’s new blockchain LUNA also saw its native token drop 5.31% to $.1.87319. The new blockchain network has not been as successful as its predecessor as the community continues to wary of the ecosystem. Its market cap was he $408.09 million.
