Terra Classic (LUNC) has faced significant turmoil, losing approximately two-thirds of its capital since December 2023, leading to substantial selling pressure. The altcoin has also fallen out of the top 100 cryptocurrencies by market value, signaling a loss of strength to investors.
As of January 24th, LUNC’s market cap dropped to $525.74 million, with the price at $0.00009038, marking a $200 million decrease in market value within a week. On January 16th, LUNC had a market cap of $727.11 million, according to CMC data.
At the end of the previous year, Terra Classic reached its peak with a $1.5 billion market cap on December 4th, amid a mini bull run and general excitement for altcoins. However, a subsequent decline led to significant fluctuations in LUNC’s value.
Terraform Labs, the creator of TerraUSD and a trigger for the 2022 crash, filed for Chapter 11 bankruptcy in the US, as revealed by recent court documents. The Singapore-based company, with assets and liabilities between $100-500 million, submitted the bankruptcy filing in Delaware.
This news may have eroded confidence in the Terra Classic ecosystem and LUNC investors. While the broader crypto market experiences a downturn, LUNC has been hit especially hard by the bankruptcy filings. The future of both Terra (LUNA) and LUNC appears uncertain following the loss of trust, and while some groups may anticipate a price rise, investors are advised to exercise caution.
