Terra new development project drives USTC and LUNC prices skyrocketing

The exciting Terra development has pushed up the price of LUNC and USTC, while Do Kwon is grappling with ongoing legal battles.

The Terra Classic USD (USTC) price skyrocketed by 157.97% in just 24 hours to around $0.04078, with a significant increase in trading volume. The price of Terra Classic (LUNC) has also increased by 21% over the same period. These gains may be attributed to recent developments in Terra, including plans to integrate the FeeShare module, which is designed to reward contributors to the Terra network. In addition, Terraform Labs injected $15 million into the ecosystem to enhance liquidity for assets such as Bitcoin and Ethereum on its decentralized exchange. Despite the positive developments, Terra founder Do Kwon has been embroiled in a legal dispute with the SEC in the United States and has faced legal challenges in multiple jurisdictions.

USTC price rises by more than 150%

In the last 24 hours, USTC has emerged as one of the hottest cryptocurrencies, with its price soaring by 157.97% in just one day of trading. This means that the value of the former stablecoin is around $0.04078 as of press time.

The intra-market trading volume of the University of Science and Technology also surged by more than 2,000% from yesterday, rising to about $691.21 million. The positive price performance over the past 24 hours has also propelled its weekly performance further up to around +207.81%.

Terra Classic prices have also skyrocketed

The price of LUNC, which has risen by more than 21% in the last 24 hours, has also become a hot topic. This means that the value of the token is approximately $0.00009453 as of press time. This is after it successfully set a high price of $0.0001048. The LUNC price reached an all-time high (ATH) of $119.18 in April 2022 but has since retraced more than 100%, trading to its current level.

Terra is a big step forward

Some of Terra’s new developments are likely to breathe new life into the price of LUNC and USTC. In early November, the Terra team announced in an X post that they had started the voting process for a proposal to integrate the FeeShare module into Terra, following the approval of the TFL Community Funding proposal on October 25.

The FeeShare module is designed to reward teams that contribute to the Terra network by sharing a portion of on-chain transaction fees. Once implemented, 50% of the transaction fees generated by the Terra smart contract will be distributed to the contract owner, and the remaining 50% will be distributed to LUNA stakers.

In addition, until January 2025, Terraform Labs will calculate the fees incurred by the Terra smart contract and match 50% of the fees collected to stablecoins, which will be distributed to the address specified by the contract owner. This will allow the team to receive 75% of the on-chain fees incurred. However, it is still important to remember that the fee sharing module is still only a proposal and will only be approved with strong support from the community.

$15 million capital increase

Another factor that may attract traders’ attention is that Terraform Labs, the startup behind Terra (LUNA), has injected around $15 million into the ecosystem to enhance the liquidity of larger assets such as Bitcoin (BTC) and Ethereum (ETH). ）。 This funding injection is specific to Astroport and Ura, which are decentralized exchanges (DEXs) within the Terra community. Funding deployments are spread across 11 pools across Astroport and Ura, but Terraform Labs plans to allocate more funding to its protocol in the future.

The Terra (LUNA) protocol has had previous challenges with cold starts, but funding easily solves this problem. This injection solves this problem by ensuring that users have enough liquidity to buy and trade important assets. It also creates opportunities for developers to build powerful and exciting decentralized finance (DeFi) applications on top of these assets.

To maximize the benefits of this new liquidity infusion, Terraform Labs is also actively partnering with various projects. They even sent out an open invitation to teams interested in building DeFi solutions on the Terra (LUNA) platform using blue-chip liquidity.

This capital injection is a huge milestone for the Terra ecosystem, not only because of its bumpy past, but especially because it coincides with an era when DEX aggregators are actively looking for the best platform to execute trades for their expanding user base. In the coming weeks, the trading volume of the Terra ecosystem is likely to increase significantly, resulting in higher yields for LUNA stakers. This has also been reflected in the positive price performance of LUNC and USTC.

Do Kwon is still mired in legal battles

Terraform Labs founder and former CEO Do Kwon is still embroiled in legal battles with the U.S. Securities and Exchange Commission (SEC) over the infamous depeg and the subsequent collapse of stablecoin USTC. The lawsuit was filed in February, less than a year after the decoupling. The collapse of USTC led to multiple bankruptcies and exposed vulnerabilities within the now-failed FTX exchange empire, as seen in the trial of former FTX CEO Sam Bankman-Fried.

In addition to the SEC lawsuit, Do Kwon faces other legal troubles. In March, he was charged by a grand jury with fraud, including wire fraud, securities fraud and merchandise fraud. In addition, the South Korean authorities issued an arrest warrant for him in October last year. After serving a four-month sentence in Montenegro, Kwon now faces extradition to the United States or South Korea. Initially, the Montenegro High Court rejected his appeal after he was arrested in March for forging travel documents. However, recent reports suggest that the High Court has now cleared the way for extradition, leaving the destination of the right to the authorities to decide.

Source: Golden Finance