Terraform Labs (TFL), the company behind the Terra ecosystem, has announced a significant update regarding its Chapter 11 bankruptcy proceedings. This could have major implications for the prices of LUNA and LUNC.
Terra’s Bankruptcy Hearing Set for September 19
On August 21, Terraform Labs announced via social media platform X that the Plan Confirmation Hearing for its Chapter 11 bankruptcy cases is scheduled for September 19 at 10:00 AM ET. This hearing is a crucial step in Terraform Labs’ reorganization plan. The deadline for filing Preliminary Crypto Loss Proof of Claim forms is also today, August 21. Creditors who want to participate in voting on the proposed Chapter 11 Plan must submit their claims by this deadline.
Terraform Labs filed for Chapter 11 bankruptcy in January and reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) in June. The Bankruptcy Court for the District of Delaware recently approved the proposed plan.
Shuttle Bridge Reopening and Token Burn
As part of its reorganization efforts, Terra plans to reopen the Shuttle bridge, allowing users to redeem wrapped assets on Terra Classic. This process will include burning LUNA ecosystem tokens held in the wallets of Terraform Labs and the Luna Foundation Guard (LFG). Users will have 30 days to redeem their assets, after which any unclaimed crypto assets will be burned.
Potential Impact on LUNA and LUNC Prices
The reopening of the Shuttle bridge and the burning of tokens may positively impact LUNA and LUNC prices. Following the announcement, LUNA’s price saw a brief 2% jump, with current prices up 0.50% at $0.3289. Trading volume has also increased by 17%, reflecting growing interest among traders.
Similarly, LUNC’s price climbed 2%, rising to $0.000082 from a 24-hour low of $0.000077. Trading volumes for LUNC have surged by 38% as traders adjust their positions amidst a broader crypto market selloff.
