Fireblocks Withdraws Support for Terra Luna Classic (LUNC), Impending Delisting Concerns on Binance Exchange

Fireblocks Withdraws Support for Terra Luna Classic (LUNC), Impending Delisting Concerns on Binance Exchange

In a recent development, digital asset infrastructure provider Fireblocks has made the decision to discontinue its support for Terra Luna Classic (LUNC), posing significant challenges for the LUNC community in their efforts to revitalize the ecosystem. This move raises concerns about the potential delisting of the LUNC token on centralized exchanges that rely on FireBlocks for custody services and other solutions.

LUNC DAO, in an announcement on August 8th, disclosed that several digital asset infrastructure providers, including Fireblocks, are terminating their support for Terra Luna Classic. As a result, the risk of LUNC being delisted from exchanges utilizing Fireblocks’ services as custody solutions is now a pressing reality.

Fireblocks has cited multiple reasons behind its decision to withdraw support for LUNC. These reasons include issues related to unreliable public nodes infrastructure, non-central governance leading to uncoordinated decision-making regarding upgrades and changes, frequent changes in tax fee structures, and a lack of comprehensive technical documentation.

A spokesperson from Fireblocks stated, “We have been closely monitoring this network for over six months now, and we have come to the realization that this chain bears an exceptionally high risk of fund losses and overall instability.”

The VP centralization, proposals, and actions taken by the Joint L1 Task Force team have been identified as contributing factors to the potential risk of LUNC delisting by various cryptocurrency exchanges. However, there is a glimmer of hope for the LUNC community, as speculation suggests that Binance, the largest exchange actively supporting the Terra Luna Classic community, may be using an alternative custody solution for LUNC.

In response to the concerning situation, the LUNC community is actively contemplating reaching out to both Fireblocks and Binance to address any fears of FUD (Fear, Uncertainty, Doubt) and explore potential solutions. Additionally, community members are demonstrating their unwavering support for the chain by refusing to sell their LUNC or USTC tokens.

As a consequence of the recent developments, the price of LUNC has experienced a decline of more than 1% in the last 24 hours and 3% in the past week, with the current trading price standing at $0.000077. The 24-hour low and high for LUNC are recorded at $0.0000758 and $0.0000785, respectively.

On a different note, the price of USTC has seen a notable increase of nearly 2% in the past 24 hours and an impressive 31% surge over the past month, largely attributed to USTC repeg efforts. Furthermore, the trading volume for USTC has surged by a substantial 110% in the last 24 hours.

The LUNC community faces a critical juncture as they work towards finding alternative solutions and rallying support to address the challenges posed by the withdrawal of support from Fireblocks and the looming possibility of delisting on major exchanges like Binance.