Terra-linked tokens have lost an average of 5% in the past 24 hours following the US Securities and Exchange Commission (SEC) charges against Terraform Labs and Do Kwon, according to data from CryptoSlate.
SEC designates Terra tokens securities
in feb. 16 complaints, the SEC alleged that the failed Terra algorithmic stablecoin TerrraUSD (USTC), LUNC — formerly Terra Luna — and Wrapped LUNA Classic (WLUNC) were securities under US securities laws.
The financial regulator further argued that Terraform Labs violated securities law by launching the Mirror (MIR) protocol. MIR allowed users to create mAssets, which constitute a security-based swap, according to the SEC.
The SEC added that the encapsulated version of Luna is also safe.
“wLUNA is also security because it is a receipt for security.”
Dump tera codes
The tokens associated with Terra have lost value in the last 24 hours after the revelation.
The USTC decreased by 7.23% during the reporting period against the dollar0.02852. Since he lost his currency peg to the US dollar in May 2022, members of the community have failed to help him regain its value through numerous proposals.
LUNC decreased by 4% during the reporting period to $0.00017, which is 100% below its all-time high of $104.73. The sale also saw its market value fall below $1 billion – it currently stands at $993.2 million.
Meanwhile, the new ecosystem LUNA blockchain saw its native token drop by 5.31% to the dollar.1.87319. The new blockchain network has not enjoyed the same success as the previous one, as the community remains wary of the ecosystem. Its market value was $408.09 million.
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