TerraClassicUSD ($USTC) and Terra Classic ($LUNC), the cryptocurrency responsible for the market’s dramatic downturn in 2022, is now showing signs of a strong recovery.
This turnaround has been largely attributed to a rumoured move by Luna Classic Labs, a validator and project incubator for the cryptocurrency ecosystem. It reportedly acquired 25.6 million TerraClassicUSD (USTC) tokens, valued at around $500,000.
However, Luna Classic Labs have denied this, calling the rumours “fake news” that was spread by X user @0x_Ears. The user claimed to be an official partner of the validator, which Luna Classic Labs have denied.
Luna Classic Labs said on the social media app X: “This news is not only bullish, but also bullsh*t…”
It added: “This fake news comes from the workshop of shitcoin fraudsters and pump & dump engineers LUNCDAO (@OX_DAO , @0x_Ears , @morning_warmth , @wrapped_dday …) and other fairy-tale creatures who behave hostile to #LUNC people and to the entire #TerraClassic blockchain.”
The “fake news” has been reported by at least 10 different publications, including FX Street.
These rumours led to a notable increase in USTC’s price, which surged by 300%. Subsequently, LUNC, the sister token of USTC, also saw a significant rally, with its price increasing by nearly 50%. Both cryptocurrencies have since corrected slightly since these surges.
Fake SEC news
The X user @0x_Ears also claimed that following the USTC investment, Luna Classic Labs received a cease and desist notice from U.S. regulators. The user said the company was now seeking legal advice on how to proceed.
Luna Classic Labs described @0x_Ears as a “demagogue, liar, hoaxer and scammer in one person”.
The user responded on X, stating that it was “designed to embarrass and distance Luna Classic Labs from my account… This was a huge shock to me and I am considering my options.”
More “false” claims from @0x_Ears
After sharing the USDT news, the X user claimed he had moved on from the Luna Classic Labs organisation and was jumping into the position as CMO of crypto payment company Mint Cash.
Minjae Yang, the core developer of Mint Cash, denied these claims, stating: “I can confirm everything he claimed IS FALSE.”
LUNC and USDTC price action
At the time of writing, both cryptocurrencies have managed to maintain their gains. As of 28 November, USDTC was trading at $0.039. The former stablecoin was up almost 200% in the past seven days, but down 24% in the previous 24-hours.
Similarly, LUNC was down 14% in the past day, but up 27% in the previous week. It was trading at $0.00009.
