The price of Terra (LUNA / USD) rebounded as the rest of the cryptocurrency industry rebounded and investors pondered Terraform Labs’ new lawsuit. The LUNA price is trading at $ 42, which is slightly above the weekend low of $ 39.95. It has a total market cap of more than $ 17 billion, while UST, its stablecoin, is worth more than $ 2.7 billion.
Terraform lawsuit against the SEC
The relationship between the Securities and Exchange Commission (SEC) and cryptocurrencies is not going well. In a statement, the founder of Terra said he had been summoned by the SEC. And in a statement on Friday, the company said its CEO and the company are challenging the subpoenas issued by the regulator.
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At the heart of the lawsuit is the Mirror Protocol, currently the third largest DeFi platform built with Terra’s platform. According to DeFi Llama, Mirror is valued at around $ 1 billion. It’s relatively smaller than Anchor and Lido, which have $ 4 billion and $ 3 billion TVL, respectively.
Mirror is a DeFi platform that enables people to trade synthetic assets that track a wide variety of assets such as stocks, real estate, and even stocks. The SEC argues that the Mirror Protocol offers unregistered securities to traders. In the lawsuit, Terra said:
“The SEC’s behavior here violated not only its service rules, but also its rules requiring it to keep formal investigative orders confidential.”
Terraform, Terra’s parent company, said the lawsuit was also misdirected. For one, the company is not the developer of the mirror protocol. For example, the SEC can’t file a lawsuit against Apple for what app developers have created.
The SEC has also sued Terraform over its stablecoin known as UST. The VAT is not covered by real money. Instead, it is backed by LUNA, its cryptocurrency.
LUNA price prediction
The 4-hour chart shows that the Terra price has rallied strongly in the past few days. It is up about 25% from its lowest point this month. The coin has also jumped above the 25- and 50-day moving averages while the MACD has moved above the neutral level.
The coin appears to form a cup and handle pattern. Hence, LUNA price is likely to continue to rise as the bulls target the all-time high of $ 50.
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