The Terra Luna Classic (LUNC) community is embroiled in a heated dispute with Karak Network, a crypto project backed by Coinbase and Pantera Capital. The accusation? Misappropriation of 200 million USTC (now worth around $8 million) dating back to Karak co-founder Raouf Ben-Har’s previous venture, Risk Harbor (now Andalusia Labs).
Missing Millions and Community Action
LUNC developer RedlineDrifter reignited the controversy, alleging that Karak Network, through Ben-Har, has not returned the funds believed to be withdrawn using an admin function during Ben-Har’s time at Risk Harbor. This has sparked outrage within the LUNC community, which has already taken significant steps to reduce circulating supply by burning 800 million USTC.
Karak Network Denies Claims
Karak Network’s CSO, Victor Cheng, vehemently denies the accusations, stating, “No user funds were ever touched.” He claims the Terra Foundation minted and provided UST that was later sold for a fraction of its value.
The disagreement has divided the LUNC community. Some believe Karak is responsible, while others side with the network’s explanation. This controversy coincides with a stagnant price performance for both LUNC and USTC. USTC is down 1% in the last 24 hours, while LUNC has gained a meager 1%. Trading volume has also decreased for both coins.
Hope for Revival: Binance Burn and Tax2Gas
Despite the current turmoil, the LUNC community remains hopeful. They anticipate a significant price recovery in July, fueled by the upcoming Binance LUNC burn and the implementation of Tax2Gas, a mechanism that aims to reduce circulating supply further.
Uncertain Future for LUNC
Whether the missing USTC allegations hold weight and how the community reacts will significantly impact LUNC’s future. Additionally, the success of the Binance burn and Tax2Gas in boosting prices remains to be seen. Only time will tell if the LUNC community can overcome these challenges and steer the project towards a brighter future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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