Crypto.com confirmed the delisting of the Terra Classic token from its trading platform following Terra Labs’ bankruptcy filing.
The announcement of the delisting of Terra Classic (LUNC) by the major exchange was followed by a significant 12.4% drop in LUNC over the last 24 hours by press time. The delisting news reached investors through emails with the delisting scheduled for Feb. 15. The lack of any previous official communication initially raised doubts about the authenticity of the information, with concerns about potential email spoofing.
Fears of the rumor were soon confirmed true as Crypto.com acknowledged the delisting without issuing an official statement through their website or social media platforms. The situation was exacerbated mere hours after Terraform Labs, the organization behind Terra Classic, filed for Chapter 11 bankruptcy protection in the United States.
Terraform Labs filed for bankruptcy on Sunday, listing assets and liabilities in the $100 to $500 million range. The company intends to meet all financial obligations to employees and vendors during the bankruptcy proceedings without any further financing while continuing to expand its offerings.
The news comes after Terra Classic has seen its price rally significantly at the end of November. At the time, Luna Classic recorded a 42% hike in just 24 hours as its market cap reached $661 million and a daily trading volume of $513 million. As of press time, Terra Classic’s market cap stands at $567 million — over 10.5% lower — and its 24-hour trading volume stands at $57 million, nearly 89% lower.