Do Kwon and his company Terraform Labs have reached a settlement with the US Securities and Exchange Commission (SEC), as reported by Reuters. The SEC had filed a lawsuit against them for deceiving customers before the collapse of the TerraUSD stablecoin in 2022.
The details of the settlement were posted on a court website on Thursday, but no specifics were provided. Terraform and Do Kwon were found liable for charges of civil fraud in April.
The SEC alleged that Kwon and his company had misled investors about the stability of TerraUSD in 2021. The stablecoin was supposed to be pegged 1:1 to the US dollar. The SEC also accused the defendants of deceptively claiming that a popular Korean payment platform used Terraform's blockchain.
As of the time of writing, the LUNC price was trading for $0.0001232. It has increased by more than 10% in the last 24 hours, with its market cap rising by 10.49% to $714 million, and its trading volume surging by a substantial 272%.
LUNC price prediction is bullish in 2024
The price of LUNC is expected to increase in 2024 for several reasons. On January 1, Binance burned 2.1 billion LUNC tokens as part of an effort by the Terra Luna community to reduce the number of LUNC in circulation.
LUNC is highly liquid with a substantial market cap, which can help build market resilience. At the end of April, it had an annual negative inflation rate of -3.52%, which highlights a controlled token supply and aligns with the coin's deflationary principle.
Terra recently introduced the option to pay gas fees in USD Coin (USDC), which will enhance user convenience and flexibility. The improved onboarding process could help Terra attract a broader audience. The Terra ecosystem also partnered with StationWallet, enabling a more user-friendly experience by letting users choose the fee token they want to use.
Terra decided to keep LUNA as the ecosystem's optimal fee token, which offers staking rewards in USDC and cost advantages. This shows Terra wants to give its community value. This positive development could bring about higher adoption and usage, reflecting positively on LUNC market prices and affecting the overall demand for other native ecosystem tokens.
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