Concerns of an ongoing dump emerge as Terra Classic (LUNC) gets left behind in the latest market-wide rally.
Bankrupt exchange FTX has been sending out its Terra Classic holdings since late February, with the distribution campaign seeing a massive uptick this month. As a result, the embattled platform has transferred over 82.5 billion LUNC tokens in the past week.
Notably, the FTX Hot Wallet address moved 32.5 billion Terra Classic in three uneven transactions on March 7. All three transactions were eight hours apart, with two of them sending 17.5 billion to a central address. The funds were then routed to exchanges.
The FTX address sent 20 billion LUNC to the same central address three days later. Shortly after that, on March 14, up to 30 billion Terra Classic tokens were transferred to the aforementioned address. The tokens were also routed to exchanges, triggering concerns of a selloff.
MrStark, an anonymous crypto trader and LUNC investor, recently pointed out the slew of transactions, highlighting the latest 30 billion LUNC transaction on March 16th. Recall that The Crypto Basic called attention to this FTX wallet in a report last December.
30B of $LUNC discharged by #FTX thieves pic.twitter.com/lduxeQIgME
— MrStark (@bellavistacap) March 16, 2023
Speculations of a Dump
This cluster of transactions picked up on March 7, coinciding with Judge Michael Wiles’ decision to permit Binance.US to acquire Voyager’s assets, despite opposition from the US SEC and state regulators.
As a result, the development has triggered rumors that the transferred funds may be Voyager’s assets, intended for Binance.US as part of the $1 billion acquisition deal. Recall that Voyager has been persistently dumping millions of dollars worth of assets, including Ethereum and Shiba Inu, in an elaborate distribution campaign observed since the start of the year.
Other theories suggest that the funds could go to FTX’s bankruptcy proceedings, especially legal fees and other financial obligations. Notwithstanding, it bears mentioning that these are mere speculations, as FTX has not publicly disclosed the true purpose behind transferring these funds.
Amid these apprehensions of an ongoing dump, Terra Classic has been trailing behind the broader crypto market. With a 3.55% gain in the past week, the asset is the second least gainer among the top 65 assets within this time frame, only above XRP. LUNC is trading for $0.0001269 as of press time, up 1.53% in the past 24 hours.