Analysis: The conviction of Do Kwon – Is it beneficial or detrimental for Terra Classic?

1. Legal pressure relieved — A significant "turning point"

Over the past 2 years, the Terra Classic system has been hanging in the balance due to legal factors related to Do Kwon.

His conviction helps to end the uncertainty, reducing systemic risk, especially:

• No worries about the possibility of "one fine day" Do Kwon being acquitted and declaring a return to Terra 2.0 or interfering with LUNC.

• Creating a more transparent environment for validators, developers, and the community.

⟶ In terms of market psychology: beneficial.

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2. Terra Classic has completely separated from Do Kwon

The Terra Classic system (LUNC/USTC) is now operated by the community, no longer dependent on or related to Do Kwon.

His sentence inadvertently reinforces the narrative that:

“Terra Classic is a self-recovering community project, no longer involving the founder.”

This helps attract a new group of investors who favor “community-driven” projects.

⟶ Beneficial in terms of narrative & communication.

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3. Reduced legal risks for exchanges

Some exchanges have been cautious with LUNC due to concerns related to the Do Kwon lawsuit.

Now that everything is clear, the likelihood of:

• Re-listing,

• Opening margin,

• Opening staking,

• Or reducing trading restrictions… will be higher.

⟶ This is a positive signal for long-term liquidity.

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4. However: No immediate large impact

The Terra Classic system still needs to truly revive:

• Technology updates,

• New cash flow,

• Real-world applications,

• Community unification,

• Clear USTC & LUNC burn roadmap.

Do Kwon's conviction does not cause an immediate price pump, but it removes one of the biggest "bottlenecks". ⟶ Positive $LUNC $USTC