Cryptocurrencies associated with Do Kwon are surging this week and outperforming the broader market. Terra 2.0 (LUNA) price rose by 45% in the last 24 hours and 200% from its lowest level this month.
Similarly, the Terra Luna Classic (LUNC) price jumped to a high of $0.000060, up by 274% from the October low, while the USTC token jumped to $0.01, much higher than the October low of $0.004. These tokens have reached market capitalizations of over $105 million, $330 million, and $57 million, respectively.
Do Kwon Sentencing is Coming This Week
LUNA, USTC, and LUNC prices are soaring as investors anticipate the upcoming sentencing of Do Kwon on December 11. Kwon was accused and later pleaded guilty to various crimes related to the collapse of Terra and its ecosystem, which cost investors over $40 billion.
His crimes include money laundering and wire fraud. As a result, American prosecutors are seeking a maximum of 12 years in prison, while his defense attorneys argue that he deserves no more than five years for his crimes.
They argue that Kwon acted in good faith by pleading guilty, thereby avoiding a lengthy trial. Also, they argued that he has already served over 3 years in prison, including in Montenegro.
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Meanwhile, the judge overseeing the case recently sought more information on the charges than he faces in South Korea, his home country. He faces up to 40 years in prison in South Korea.
A small Polymarket poll with $39k in assets predicts that he will be sentenced to between 9 and 12 years in prison. 18% of the participants expect that he will serve between 7 and 9 years. Another poll shows that it is unlikely that Donald Trump will pardon him.
Why LUNA, USTC, and LUNC Prices May Retreat Soon
Therefore, the LUNC, LUNA, and USTC tokens are rising as investors assess that his sentencing will be a new beginning for the ecosystem.
For starters, Terra was once one of the biggest players in the crypto industry, with over $40 billion in assets. The network promised double-digit returns on its stablecoin, which lost its peg in May 2022.
After that, Do Kwon and his supporters launched Terra 2.0 to rebuild the network, but the efforts were largely unsuccessful. On the other hand, the community took over Terra Luna Classic and the USTC stablecoin.
One of the key features of Terra Luna Classic is its burning, which has removed millions of LUNC tokens from circulation. Binance is the biggest participant in the burning process.
Still, it is unlikely that the ongoing LUNA, USTC, and LUNC price surges will be sustainable as there is no major catalyst behind them. Instead, the token is likely to drop as investors sell the news.
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