The recent update regarding Terraform Labs and its co-founder reaching an agreement with the US Securities and Exchange Commission (SEC) has caused significant movements in the token prices within the Terra ecosystem. Following the news of the SEC agreement involving TFL and Do Kwon, tokens like LUNC and USTC have witnessed substantial price increases, with double-digit percentage gains. Despite an initial spike of 15% in LUNC and USTC prices immediately after the announcement, a 5.67% uptrend over the last day suggests a partial correction of the gains.
Market analysts are speculating about the potential surge in LUNC price, projecting a revisit to the $0.0002 range, which could signify an uptick of more than 60%. The revelation of the agreement between TFL, Do Kwon, and the SEC sent shockwaves throughout the market due to the fraud charges involved. The jury's ruling in April found Kwon and Terraform Labs responsible for causing investors losses nearing $40 billion.
In response to the SEC's directives, US District Judge Jed Rakoff has called for the submission of documentation validating the agreement by June 12. The SEC's stipulations include the disgorgement of $5.3 billion in unlawful profits from stablecoin sales by Terraform Labs and Do Kwon, along with fines totaling $420 million for the company and $100 million for Kwon.
The surge in Terra (LUNA) prices by 30% immediately post-announcement was accompanied by a remarkable surge in trading volumes, which surged by 183% to $118 million within a day. The current valuation of LUNC is at $0.0001218. Notably, Coinglass data highlights a 20% surge in LUNC and 1000LUNC futures open positions within 24 hours. Additionally, the open interest rate on Binance surged by a substantial 23%.
Leading crypto analyst Javon Marks highlighted the likelihood of LUNC achieving new highs post-breakout, hinting at a target price of $0.00021439, translating to a significant 63% surge.
As LUNC prices show promise, USTC prices have also demonstrated an uptick of over 9%, trading at $0.02373 at the time of this writing. The price range of USTC coin over the past day oscillated between $0.02152 and $0.02694, with trading volume witnessing a surge of over 200% during the same period.
Derivative data reflected a 15% rise in the total USTC futures' open interest within a day, alongside a 25% surge in USTC futures' open positions on the Huobi exchange within an hour of the announcement. The notable movements in both LUNC and USTC prices underscore an active market landscape influenced by the recent SEC agreement.
