Fireblocks Delists LUNC, USTC with Security Warning Attached
Major infrastructure providers point out drawbacks of the Terra Classic chain.
All centralized exchanges powered by Fireblocks will have to delist $LUNC.
Major digital asset infrastructure provider Fireblocks published a report on the Terra Luna blockchain, highlighting their decision to delist the already-struggling altcoins in the system, including Terra Luna Classic (LUNC) and the malfunctioning stablecoin Terra Classic USD (USTC).
The bad news for Terra Classic blockchain was broken by LUNC DAO, an experienced validator for the community, who shared a screenshot of the announcement by Fireblocks. Unfortunately, that means that every centralized crypto exchange (CEX) would have to comply with the decision by the infrastructure provider.
Fireblocks highlighted the negative results of six-month surveillance on Terra’s blockchain, and here’s what they found:
Untrustworthy public nodes structure & unstable fee structure.
Lack of documentation and uncoordinated decision-making.
A high risk of loss of funds and overall instability.
Adding to this list, veteran validator LUNC DAO added that choosing shared key validators was a mistake in the Terra Classic chain’s revival plan. The experienced crypto trader argued that VP centralization brought more ignorance to the chain, as “the VP that can pass them easily is generally clueless about DeFi and business.”
Biggest LUNC Chain Supporter Likely to Stay
While the unfavorable news from Fireblocks worried the Crypto Twitter crowd, Terra Classic holders were relieved to hear that Binance had used a different custody solution. This means that the largest crypto platform around the globe won’t have to abide by these rules and can keep supporting Terra Classic’s revitalization.
Binance plays a key role in revitalizing Terra Classic, as the crypto giant accounts for over 50% of $LUNC burns. The latest edition of burning $LUNC fees accumulated by trading the tokens on Binance has sent 2.6 billion LUNC tokens to the bottomless pit.
While the most avid supporters of Terra Classic are suggesting that the trading volume could be pushed onto the blockchain and later re-listed once the USTC Quant Team re-pegs the troubled stablecoin $USTC, $LUNC still took a pretty heavy hit in the wake of the news.
At press time, the #92 ranked LUNC trades at $0.00007807, dropping 3.8% in value over the last seven days. Sitting at a $453 million market cap, the embattled altcoin has lost over half its global market capitalization since March 1st, 2023.
On the Flipside
While the OG LUNC validator LUNC DAO pointed out the shortcomings of the Layer-1 Joint Task Force Team (L1JTF), many other members of the Terra Classic community aren’t satisfied with USTC Quant Team’s conduct, causing more inner conflict between members.
Terra Classic chain has a huge and active community, striving towards the revitalization of the once-thriving blockchain.
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