Terraform Labs is on the brink of bankruptcy, with mounting speculation surrounding its future. Analysts previously warned that LUNA Coin might face tough times ahead. This prediction appears to be materializing as the decision to declare bankruptcy has been made, casting doubt on any temporary price surges due to their lack of a solid foundation.
Is Terra (LUNA) Coming to an End?
Holding assets valued between $100 million and $500 million, Terraform Labs plans to allocate these funds towards creditor settlements. If any funds remain after clearing these debts, the company might pay up to $2 billion to the SEC. However, given the insufficient funds, meeting all obligations or paying fines to the SEC seems improbable.
Today’s announcement reveals that discussions are underway with third-party entities regarding the potential transfer of certain ecosystem applications. This raises the question of which entity would be interested in investing in the weakened LUNA Coin ecosystem. Terraform Labs stated that if these agreements cannot be secured, they will discontinue several services, including Enterprise, Warp Protocol, and others, by October 30, 2024.
What Are the Future Prospects for LUNA Coin?
If a buyer does not emerge by the end of October, LUNA Coin could lose its relevance, leading to a possible decline in its price. The cryptocurrency market, known for its unpredictability, might see speculative price movements based on rumors of potential deals. Still, the anticipated downturn for LUNA Coin aligns with predictions made over the past two years. Do Kwon’s potential extradition and the tarnished reputation of former executives further complicate the situation, as the market shifts towards other alternatives.
Key insights to consider:
- Terraform Labs plans to use remaining assets for debt settlements.
- Potential discontinuation of services if deals aren’t made by October 2024.
- Market predictions foretell a likely decline for LUNA Coin.
- Emergence of alternative options in the crypto market.
Investors should remain cautious. Despite recent news-driven price attempts to rise, maintaining prudent stop levels is essential to guard against a potential catastrophic loss, which could see values plummet by up to 99%.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/is-luna-coin-facing-its-end