Terra Confirms Bankruptcy Hearing Date, Will LUNC & LUNA Price Recover?

As a seasoned researcher with years of experience in the tumultuous world of cryptocurrencies, I must say that the news about Terraform Labs (TFL) setting a Chapter 11 bankruptcy hearing for September 19 has piqued my interest more than a cat’s curiosity in a room full of yarn balls.


On Wednesday, Terraform Labs (TFL), the organization responsible for the Terra ecosystem, disclosed significant news about their Chapter 11 bankruptcy proceedings. According to TFL, the initial hearing for this bankruptcy process is scheduled to begin in mid-September.

Terra Bankruptcy Hearing Set For September 19

On August 21, Terra publicly announced the date for the Plan Confirmation Hearing of the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL). This hearing is set to occur on September 19 at 10:00 AM Eastern Time.

Today, August 21, represents a significant milestone in Terraform Labs’ bankruptcy reorganization plan, as it’s the date when they must submit their Preliminary Crypto Loss Proof of Claim forms. This submission is vital for creditors wishing to participate in voting for the proposed Chapter 11 Plan, as it gives them a chance to assert their rights.

In January, Terraform Labs sought protection under Chapter 11 of bankruptcy, while in June, they reached an agreement on a $4.47 billion settlement with the United States Securities and Exchange Commission (SEC).

The Bankruptcy Court in Delaware has given approval to TFL’s proposed plan. Terra intends to reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic. Moreover, they will destroy LUNA ecosystem tokens stored in TFL and Luna Foundation Guard (LFG) wallets.

Users will have the option to redeem their wrapped assets from the bridge wallets for a period of 30 days. Any crypto assets left unredeemed after this timeframe will be destroyed (burned).

How LUNC and LUNA Price Will React?

As a crypto investor, I’m optimistic about the future price recovery of both LUNA and LUNC. The firm behind Terra has announced plans to burn tokens from their own wallets, which could potentially reduce supply and increase demand. This move might be one of the reasons why cryptocurrency exchanges like eToro and Gemini have decided to delist these affected crypto. As an investor, I’ve chosen to withdraw my tokens from exchanges and stake them instead, hoping to benefit from any potential price increases that may occur due to this token burn strategy.

As a researcher, I observed an immediate 2% surge in the price of LUNA following the announcement, currently sitting at a 0.50% rise to $0.3289. Over the past 24 hours, the price fluctuated between $0.3214 (low) and $0.3392 (high). Notably, the trading volume has surged by 17%, signaling heightened interest from traders in this cryptocurrency.

In the meantime, the price of LUNC rose by 2% to reach $0.000082, having previously dropped to a 24-hour low of $0.000077. Notably, the volume of trading over the past 24 hours grew by 38%, indicating that traders are adjusting their positions in response to the broader cryptocurrency market downturn.

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2024-08-21 13:08