The Terra Classic community is calling for transparency as concerns mount over the delisting of LUNC (Terra Luna Classic) on major trading platforms. Recently, social investment platform eToro restricted trading of tokens associated with Terraform Labs (TFL), including LUNC, placing them in a "close-only" status. This move has left over 78,000 LUNC holders unable to purchase the token through the platform, sparking widespread confusion and frustration across the decentralized ecosystem.
The restriction follows developments in Terraform Labs’ ongoing Chapter 11 bankruptcy proceedings in the United States. According to reports, TFL informed eToro that it retains ownership claims over LUNC — a claim that directly contradicts earlier statements from former CEO Do Kwon and the broader narrative that TFL severed ties with Terra Classic after the 2022 collapse.
Community Pushback Against LUNC Delisting
Validators and influential community members, including VegasMorph and Mr. Diamondhandz, have publicly emphasized that Terra Classic operates independently of Terraform Labs. Since the 2022 crash, the chain has been entirely community-governed, with no central authority or corporate backing from TFL.
“The Terra Classic network is decentralized. We manage upgrades, infrastructure, and governance collectively. TFL has no operational role here,” stated a community validator.
Despite this, eToro’s decision reflects a growing trend among regulated financial platforms to err on the side of caution when dealing with assets linked to bankrupt entities. By classifying all TFL-issued tokens as close-only, eToro aims to mitigate legal and compliance risks — but at the cost of user access.
This situation raises urgent questions:
- If Terra Classic is truly independent, why is it being grouped with TFL assets?
- What criteria are exchanges using to determine delisting eligibility?
- Could this set a precedent for other community-run forks facing similar regulatory scrutiny?
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Why Clarification From Chris Amani Matters
With Chris Amani now serving as CEO of Terraform Labs, the community is urging him to issue a clear statement confirming that LUNC is not under TFL’s control. Such clarification could help differentiate Terra Classic from the bankrupt entity and potentially reverse exchange restrictions.
Without an official stance, exchanges may continue treating LUNC as a TFL-affiliated asset — jeopardizing liquidity and long-term viability. The lack of communication also fuels speculation and undermines trust in both the project and its leadership.
Core stakeholders argue that distinguishing between Terra Classic (the decentralized blockchain) and Terraform Labs (the defunct company) is critical for regulatory clarity and investor protection.
Key Differences Between Terra Classic and Terraform Labs
- Governance: Terra Classic uses on-chain voting; TFL was centralized.
- Development: Updates are proposed and approved by validators and token holders.
- Ownership: No single entity owns or controls the network.
- Funding: Operates via community treasury and donations, not corporate backing.
These distinctions are not merely technical — they’re foundational to the survival of post-collapse crypto ecosystems.
Market Reaction: LUNC and USTC Price Trends Amid Uncertainty
Despite the delisting concerns, market sentiment around Terra Classic remains resilient. In the past 24 hours:
- LUNC price rose 2%, trading at $0.000083
- 24-hour range: $0.00007761 – $0.0000884
- Trading volume dropped by 12%
Meanwhile, USTC (TerraClassicUSD) also gained 2%, rebounding to just under $0.020. Its 24-hour range sits between $0.01796 and $0.02077, with trading volume surging 66% — likely driven by renewed interest following updates on TFL’s crypto loss claims process.
Notably, Terraform Labs announced plans to reopen the Shuttle Bridge, enabling redemption of wrapped assets on Terra Classic. Additionally, 150 million LUNA will be burned as part of restructuring efforts. However, details around LUNC and USTC burn mechanisms remain unclear — a point of contention among holders seeking transparency.
👉 Learn how token burns impact supply and price dynamics in crypto markets.
FAQ: Addressing Key Community Questions
Q: Is LUNC officially delisted from eToro?
A: Not fully delisted — but new purchases are blocked. Users can only close existing positions.
Q: Does Terraform Labs still own LUNC?
A: The community asserts no ownership since 2022. However, TFL’s legal filings suggest otherwise, creating regulatory ambiguity.
Q: Can the community reverse the delisting?
A: Not directly — but public advocacy and official clarification from TFL could influence exchange policies.
Q: How does this affect other exchanges?
A: If major platforms follow eToro’s lead, broader delistings could occur unless clear separation between TFL and Terra Classic is established.
Q: What happens if LUNC gets widely delisted?
A: Reduced liquidity and visibility, potentially impacting development funding and adoption — though decentralized trading via DEXs would remain unaffected.
Q: Where can I still trade LUNC?
A: Decentralized exchanges like PancakeSwap, Uniswap, and MEXC continue to support LUNC trading pairs.
The Bigger Picture: Decentralization vs. Regulatory Risk
This episode underscores a growing tension in the crypto space: decentralized communities caught in the crossfire of centralized legal battles. While blockchain networks like Terra Classic evolve beyond their origins, regulators and financial institutions often rely on issuer-based classifications — putting community-led projects at risk.
For true decentralization to be recognized legally, projects must demonstrate:
- Transparent governance models
- Clear separation from founding entities
- Active community participation in decision-making
Terra Classic has made strides in these areas — but external perception lags behind technical reality.
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Final Thoughts: A Call for Clarity and Recognition
The future of Terra Classic hinges on recognition — both from regulators and the broader financial ecosystem — that it is no longer tied to Terraform Labs. The community has rebuilt independently, sustained development, and maintained network integrity without corporate support.
Now more than ever, stakeholders need a definitive statement from Chris Amani affirming that LUNC belongs to the community, not TFL. Such acknowledgment could pave the way for reinstated trading access and prevent further erosion of confidence.
As the crypto industry matures, cases like this will shape how decentralized networks are treated in the aftermath of corporate failures — setting precedents that extend far beyond one token or chain.
Core Keywords:
LUNC delisting, Terra Classic, eToro LUNC restriction, TFL bankruptcy, Chris Amani CEO, decentralized blockchain, USTC price, community governance