Breaking: Here’s Why KuCoin Undelegated 48 Billion Terra Classic ($LUNC) Tokens

Jan 06,2023
Breaking: Here’s Why KuCoin Undelegated 48 Billion Terra Classic ($LUNC) Tokens

Crypto exchange KuCoin on December 30 undelegated all 48 billion Terra Classic (LUNC) tokens. This led to the Terra Classic validator KuCoin fall in voting power down to 0.21% and rank to 44th on the validator list.

KuCoin on Thursday revealed that it will continue the pledge of LUNC tokens after the 14-day lock period. The reason to undelegate LUNC tokens was part of a normal node switch.

KuCoin To Redelegate Terra Classic (LUNC) Tokens

Terra Classic influencer and YouTuber ClassCrypto in a tweet on January 5 revealed that validator KuCoin will continue pledging their 48 billion Terra Classic (LUNC) delegation. Meanwhile, KuCoin now ranks 46th on the validator list and has a voting power of 0.19%.

A Twitter user asked KuCoin if the crypto exchange is going insolvent or stepping back from running validators. He noted that KuCoin began undelegating all of their holdings on their validators related to LUNC, LUNA, and ATOM.

In response, KuCoin said the KuCoin validator undelegated 48 billion Terra Classic (LUNC) as the pledge node of the internal financial account switched. However, the crypto assets belonging to users are marked safe. Moreover, the validator will continue to pledge LUNC tokens after the 14-day lock period.

Recently, the community noted several validators announcing ending support for LUNC staking and asked users to redelegate their LUNC tokens to another validator.

FUD sparked in the Terra Classic community after KuCoin undelegated all 48 billion LUNC tokens last week. Some even removed their LUNC tokens and transferred them to Binance.

Meanwhile, Proposal 11168 by Terra Classic core developers Edward Kim and Tobias “Zaradar” was passed by the community. It formed a “Joint L1 Task Force” team, which now looks into the maintenance upgrades and L1 layer developments on the Classic blockchain.

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LUNC Price To Rally Again?

Terra Classic (LUNC) price rallied nearly 50% in the last few days due to a breakout above the 3-month descending channel. However, a market-wide selloff and Binance temporarily suspending LUNC burn caused the LUNC price to fell below $0.00015.

The LUNC price is currently trading at $0.00015. The 24-hour low and high are $0.0001516 and $0.0001598, respectively.

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