Cryptocurrency exchange KuCoin explains the reason behind 48 billion Terra Classic (LUNC) tokens that were not authorized by its validator last week. After this development, altcoin price headed south.
KuCoin explains the reason for its decision for this altcoin
Cryptocurrency exchange KuCoin withdrew the authorization of all 48 billion Terra Classic (LUNC) tokens on December 30. This resulted in Terra Classic validator KuCoin’s voting power dropping to 0.21% and ranking 44th in the validator list. On Thursday, KuCoin announced that it will continue the commitment of LUNC tokens after the 14-day lockdown period. The reason for revoking LUNC tokens was part of a regular node key.
Terra Classic influencer and YouTuber ClassCrypto announced in a tweet on January 5 that validator KuCoin will continue to commit to the 48 billion Terra Classic (LUNC) delegation. Meanwhile, KuCoin currently ranks 46th on the validator list and has a voting power of 0.19%.
A Twitter user asked KuCoin if the crypto exchange would go bankrupt or withdraw from running validators. He stated that KuCoin has started to hand over all its holdings in LUNC, LUNA, and ATOM-related validators. In response, KuCoin said that the KuCoin validator has handed over 48 billion Terra Classic (LUNC) while changing the pledge node of the internal financial account. However, he noted that crypto assets belonging to users are marked as safe. Also, the validator will continue to commit LUNC tokens after the 14-day lock period.
Some of the community transferred their LUNC from KuCoin to Binance
Recently, the community announced that several validators are ending support for LUNC staking. It also asked users to retransfer their LUNC tokens to another validator. Fear, uncertainty, and suspicion (FUD) sparked the Terra Classic community after KuCoin revoked all 48 billion LUNC tokens last week. Some even transferred LUNC tokens from KuCoin to Binance.
Meanwhile, as you follow on Kriptokoin.com, Proposal #11168 by Terra Classic core developers Edward Kim and Tobias ‘Zaradar’ has been accepted by the community. It has now formed a ‘Joint L1 Task Force’ team that is reviewing maintenance upgrades and L1 layer enhancements in Classic Blockchain.
Will the LUNC price rise again?
The altcoin price has risen nearly 50% over the past few days due to a break above the 3-month descending channel. However, a market-wide sell-off and Binance’s temporary suspension of the LUNC burn caused the LUNC price to drop below $0.00015.
The altcoin is trading at $0.00015, down about 2%, driven by KuCoin’s statements. Meanwhile, LUNC’s 24-hour low is $0.0001516 and its high is $0.0001598.