Terra’s Luna, Luna Classic Tokens See Volatile Trading Amid New Developments

Tokens tied to the Terra ecosystem have seen volatile trading over the past 24 hours amid legal developments against issuing company Terraform Labs, according to the data.

Luna (LUNA) prices gained as much as 30% — from $2.65 on Thursday to $3.44 on Friday morning — and then fell sharply even as the broader crypto market held steady. Luna Classic (LUC) gained up to 34% before slipping this morning, according to data from CoinGecko.

Such volatility came amid reports from the U.S. Securities and Exchange Commission (SEC) investigating whether Terraform Labs violated U.S. laws regarding how it trades its ecosystem tokens.

Futures on the two tokens saw nearly $18 million in liquidations while losses on futures for other major cryptos except Bitcoin and Ether remained below the mark $3 million.

LUNA was issued to holders in late May following the withdrawal of the algorithmic stablecoin terraUSD (UST) in early May – a move that saw the value of the old Luna (now rebranded as LUNC) plummet by as much as 99.7%. Value locked on decentralized finance (DeFi) applications in the Terra ecosystem also fell by $28 billion, as reported.

The liquidations marked the highest losses for traders of the new LUNA tokens so far, according to the data, with nearly $5 million in losses. However, LUNC futures saw higher losses at over $12 million, suggesting that retail traders continue to prefer LUNC trading over LUNA.

New LUNA token futures have seen their highest liquidations since issuance. (Coinglass)

Crypto firms Bybit and Binance are currently the only exchanges offering LUNA futures to traders, while OKEx and Huobi offer LUNC futures. OKEx, popular in Asia, recorded over $9 million in liquidations, the highest among its peers.

LUNA is trading above $3.06 at the time of writing. LUNC is trading just above $0.00007647 with gains falling to 7% for traders over the past 24 hours.

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