Terra-related tokens dump as SEC labels them securities Terra-related tokens dump as SEC labels them securities
In the Feb. 16 complaint, the SEC alleged that several tokens related to the Terra ecosystem were securities.
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Updated: Jul. 30, 2023 at 2:56 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Terra-related tokens lost an average of 5% in the last 24 hours following the U.S. Securities and Exchange Commission’s (SEC) charges against Terraform Labs and Do Kwon, according to CryptoSlate’s data.
SEC labels Terra tokens securities
In the Feb. 16 complaint, the SEC alleged that Terra’s failed algorithmic stablecoin TerrraUSD (USTC), LUNC — formerly Terra Luna — and Wrapped LUNA Classic (WLUNC) were securities under U.S. securities laws.
The financial regulator further argued that Terraform Labs breached securities law with the Mirror Protocol (MIR) launch. MIR allowed users to create mAssets, constituting a security-based swap, according to the SEC.
The SEC added that the wrapped version of Luna was also security.
“wLUNA is also a security because it is a receipt for a security.”
Terra tokens dump
Terra-related tokens have lost their value in the last 24 hours following the revelation.
USTC plunged by 7.23% during the reporting period to $0.02852. Since losing its U.S. Dollar peg in May 2022, the community members have failed to help it regain its value through various propositions.
LUNC fell 4% during the reporting period to $0.00017, which is 100% below its all-time high of $104.73. The sell-off has also seen its market cap drop below $1 billion — it currently stands at $993.2 million.
Meanwhile, the ecosystem’s new blockchain LUNA also saw its native token decline 5.31% to $1.87319. The new blockchain network has not enjoyed as much success as the previous one, as the community remains wary of the ecosystem. Its market cap stood at $408.09 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
TerraClassicUSD
$0.02113
TerraUSD (UST) is a decentralized and algorithmic stablecoin on the Terra blockchain.
Mirror Protocol
$0.02812
MIR is the governance token of Mirror Protocol, a synthetic assets protocol built by Terraform Labs (TFL) on the Terra blockchain.
Terra
$0.42967
Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.