LUNC may be at risk of a dump as users discover 154B LUNC on an FTX-owned wallet.
In a tweet on Monday, a self-acclaimed Terra Luna Classic (LUNC) whale revealed that he had discovered a wallet allegedly belonging to the now-bankrupt FTX crypto exchange holding over 154 billion LUNC worth over $27.5 million at today’s prices.
FTX hot wallet holding 154,397,275,743 $LUNC what gonna happen with these units #LUNC
We need @Bitboy_Crypto to figure it out with @SBF_FTXhttps://t.co/oINNrpBfDQ pic.twitter.com/jGB6m6QgW5
— LUNC Wolfy (@Luncwolf) November 28, 2022
The Crypto Basic check on Terra Finder confirmed the holdings showing that the last transaction on the wallet saw it receive 10 billion LUNC at the end of June. So, unsurprisingly, the Terra Classic community members are left wondering what will happen to the coins.
Some users suspect it may not be recoverable and believe it will help reduce the circulating supply. Others have asserted that FTXÂ should send the tokens to the burn wallet.Â
Despite these exciting suggestions, it is worth noting that these tokens most likely belong to FTX customers, which would make it wrong to burn up their holdings to further the LUNC burn initiative. Notably, even if they do not belong to FTX customers, as FTX assets, they are still subject to the current bankruptcy proceedings.
As part of the bankruptcy proceedings, restructuring officers are likely to liquidate these assets or sell them off to interested parties, using the proceeds in either case to compensate creditors. However, liquidation is potentially the worst outcome for LUNC holders, as dumping such a large amount of LUNC on the market could significantly impact the already struggling crypto price.
As highlighted above, FTX and its subsidiaries are embroiled in bankruptcy proceedings in the US after it filed for chapter 11 bankruptcy in the District of Delaware while filing a separate chapter 15 for the Bahamas arm of the exchange in the District of New York. Meanwhile, as previously reported, Tron Founder Justin Sun has indicated an interest in purchasing FTX assets.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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