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.