First, I will explain the legal mechanics in simple words, and then I will show where in it there is room for growth LUNC / USTC / LUNA 2.0.
1️⃣ The court "Recognized the fraudulent nature of the SALE and PROMOTION" LUNC/USTC — key nuance:
⚠️ This is a very important nuance that most do not understand.
The court did NOT say:
'LUNC and USTC are fraudulent tokens'
'The Terra Classic network is criminal'
'Trading tokens is illegal'
The court essentially said:
Do Kwon's actions in selling and marketing these tokens were fraudulent.
👉 That is:
object (token, network) ≠ crime
subject (Kwon + Terraform Labs) = source of violation
📌 This is fundamentally important
If the tokens themselves were recognized as illegal:
👉 Binance, OKX, KuCoin would have had to delist them
👉 wallets would be frozen massively
👉 the blockchain would have died
But this did NOT happen → which means legally the tokens are alive and permissible.
2️⃣ Confiscation: WHAT can really be seized (and what CANNOT)
Now to the most interesting part.
What they CAN do:
Withdraw **LUNC / USTC that:
belong personally to Do Kwon
belong to Terraform Labs
are on wallets provably linked to them**
This is standard practice:
'Seize the criminal's property, not the asset itself as a class'
What they CANNOT do:
❌ Take LUNC/USTC from ordinary holders
❌ Declare the token 'illegal'
❌ Stop the network
❌ Annul market trading
📌 And this is where the game starts in reverse.
3️⃣ Why 'increased control' is NOT a minus, but a foundation for growth
If they really punished — delisting would be everywhere
🔹 Increased control = legalization of the field
👉 they cleanse the market of legal risk
And this:
reduces the likelihood of sudden delisting
makes the asset acceptable for large players
allows funds and market makers to enter without fear
📌 Paradox:
First control → then money → then growth
4️⃣ Where is the window for growth of LUNC / USTC
🔥 Scenario of the 'reverse flip'
The main source of legal risk has been eliminated
Kwon ≠ network management
Terraform Labs ≠ control over Terra Classic
The network lives and updates
which means it is not recognized as 'criminal infrastructure'
otherwise updates would simply not pass through exchanges
The supply of LUNC is decreasing (burn)
and confiscation of tokens from Kwon = potential 'dead supply'
The narrative is changing
it was: 'the scam of Do Kwon'
can become:
👉 'the community survived the founder'
👉 'decentralization is proven'
👉 'the phoenix after cleansing'
📌 The crypto market loves such stories.
5️⃣ USTC is the darkest but most dangerous asset
USTC — a completely separate topic.
It does NOT need to return to $1 for it to grow
It is enough for him:
to become a settlement token within the ecosystem
to be used in DeFi
to be a rare speculative asset
📌 And here is the key:
USTC is a symbol of collapse, and the market loves to turn symbols of collapse into legends of recovery
🧠 The conclusion is in our spirit
The court was not the end of Terra, but a cutting point of the old story.
LUNC — cleansed through burn + decentralization
USTC — turns from 'shame' into a tool
LUNA 2.0 — a clean slate
🔹 No one invests in updating a dead asset
🔹 No one updates a network that is about to be shut down
🔹 No one keeps a listing on Binance just 'by mistake'
Updates = a signal not to the crowd, but to:
exchanges
market makers
funds
infrastructure players
And the most important thing:
The market grows not on excuses, but on closed risks. One of the biggest risks of Terra has already been removed.
#TERRA #TerraPhoenix #TerraClassic #TerraAltseason $LUNA $LUNC $USTC