KuCoin explains why 48 billion Terra Classic (LUNC) tokens went undelegated by its validator last week.
On December 30, 48 billion Terra Classic (LUNC) tokens were completely undelegated on the cryptocurrency market KuCoin. Due to this, KuCoin, a Terra Classic validator, had its voting power drop to 0.21% and its rank on the validator list go up to 44th.
On Thursday, KuCoin disclosed that it would keep pledging LUNC tokens after the 14-day lock period. In order to perform a normal node switch, LUNC tokens were undelegated.
Terra Classic (LUNC) Tokens Will Be Redelegated by KuCoin
Influential Terra Classic YouTuber ClassCrypto disclosed validator KuCoin will keep pledging their 48 billion Terra Classic (LUNC) delegation in a tweet on January 5th. KuCoin currently holds the 46th spot on the validator list and possesses a voting power of 0.19%.
A Twitter user questioned KuCoin on whether the cryptocurrency exchange was going bankrupt or stopping the operation of validators. He mentioned that KuCoin started removing all of its holdings from its validators for LUNC, LUNA, and ATOM.
In response, KuCoin claimed that 48 billion Terra Classic (LUNC) were undelegated by the KuCoin validator because the internal financial account’s pledge node had switched. Users’ cryptographic assets, however, are designated as safe. Beyond the 14-day lock period, the validator will keep pledging LUNC tokens.
The community recently became aware of some validators asking users to redelegate their LUNC tokens to another validator after they said they would no longer accept LUNC staking.
After KuCoin undelegated the entire 48 billion LUNC tokens last week, there was a lot of anxiety among the Terra Classic community. Some even transferred their LUNC tokens to Binance after removing them.
In the meanwhile, the community approved Proposal 11168 by Terra Classic core developers Edward Kim and Tobias “Zaradar.” It established a “Joint L1 Task Force” team, which is currently responsible for monitoring L1 layer advancements and maintenance updates on the Classic blockchain.
LUNC Price To Rise Once More?
Due to a breach above the 3-month declining channel, Terra Classic’s (LUNC) price increased by almost 50% during the previous few days. The LUNC price, however, dropped below $0.00015 due to a market-wide selloff and Binance temporarily halting LUNC burn.