Terraform Labs (TFL) and its CEO, Chris Amani, confirmed plans to shut down operations and liquidate assets on October 30, 2024. This follows a bankruptcy court order after the company’s settlement with the SEC.
TFL Plans Shutdown if Negotiations Fail
On September 25, TFL announced ongoing discussions with third-party companies interested in taking over some of its products and services. However, if negotiations fail, TFL will shut down by October 30. The sale includes four key businesses: Enterprise Protocol, Warp Protocol, Station Wallet, and Alliance Hub. Additionally, services like Finder Block Explorer, Foundation, IBC Relayers, and others are up for takeover, though infrastructure challenges may deter potential buyers.
Community to Take Over Chain Maintenance
As TFL wraps up its final update, the company will no longer support future chain upgrades. Maintenance of the Terra Luna Classic blockchain will now be handled by the community. Coincidentally, the shutdown date aligns with the closure of Shuttle Bridge, which will be used to burn tokens like wLUNC in contracts.
LUNA and LUNC Prices Respond to Burn News
As news of TFL’s shutdown spread, the Terra Luna Classic (LUNC) community focused on Binance’s LUNC burn mechanism. Binance recently sent more tokens to the burn address, boosting market sentiment. LUNC’s price rose 2% in the past 24 hours and 10% over the week, now trading at $0.00008775. Trading volume increased by 30%, reflecting growing interest among traders.
Similarly, LUNA’s price saw a 1% increase in the past day, trading at $0.39, with trading volume up 41%. The positive sentiment surrounding Terra’s bankruptcy plan has contributed to this surge, as LUNA’s price rose over 8% in the past week.
