A comment in my last post about LUNC “I lost $500” isn’t just frustration, it reflects the real pain of trusting a system that failed.
The story of Terra Classic is one of crypto's most dramatic rises and collapses. Millions were made and lost when the Terra ecosystem crashed in 2022, wiping out over $40 billion in market value. Since then, its founder, Do Kwon, has faced global legal consequences. But the big question many are asking in 2025:
"Is LUNC still tied to Do Kwon or Terraform Labs and is it even safe to trust anymore?"
Let’s unpack the facts, current status, and the real reasons why some still believe in LUNC.
The Legal Truth About Do Kwon
As of now:
Do Kwon has been convicted in Montenegro for using a fake passport.
He has also been found civilly liable in the U.S. for securities fraud by the SEC.
His criminal trial in the U.S. for multiple counts of fraud is still pending (trial set for 2026).
Despite these serious charges, Do Kwon is no longer involved in the development or decisions related to LUNC (Terra Classic). After the Terra ecosystem collapsed, a community-led initiative took over the LUNC chain, forming a separate identity from Terraform Labs, which now mostly focuses on Terra 2.0 ($LUNA ).
Is LUNC Still Tied to Terraform Labs?
No, LUNC is now fully operated by the community through decentralized governance. Several independent developer groups like the Terra Rebels and others manage upgrades, proposals, and ecosystem developments. It has transformed into a community-powered blockchain, separate from Do Kwon’s current legal mess.
Just like Ethereum($ETH ) survived after The DAO hack, LUNC is attempting a second life — minus its original leadership.
However, we must separate:
Past events vs. present ecosystem
Do Kwon’s actions vs. community revival efforts
Crypto is volatile and not immune to human errors, market crashes, or regulatory gaps. But so is the stock market, remember Lehman Brothers?
The difference is, in crypto, you are your own bank. And while that empowers you, it also demands more research, responsibility, and risk management.
Is Cryptocurrency Secure? 🔐
Let’s be clear:
Blockchain technology is secure, it's based on decentralized, cryptographic systems.
Cryptocurrency investing is not risk-free. It depends on the project, governance, and tokenomics.
LUNC is not a scam today. It's a risk laden recovery asset, much like penny stocks trying to regain momentum.
For safer participation:
Never invest what you can’t afford to lose.
Look for projects with clear use cases, active development, and transparent governance.
Diversify, and don't fall for hype-driven pumps.
Why Some Still Believe in LUNC 🌱
1. Decentralized Governance: The community votes on proposals.
2. Burn Mechanism: Millions of LUNC tokens are being burned to reduce supply.
3. Active Community: Developers and holders are still pushing for growth.
4. Second Chance Narrative: Many see LUNC as a comeback coin — similar to how Dogecoin survived years of "meme-only" status.
$LUNC is no longer under Do Kwon’s shadow, but the scars from the crash remain. It's not a guaranteed bet, but neither is any asset in the crypto world. LUNC is trying to rebuild from ashes, and while trust takes time to restore, the new path is being paved by the people, not a single founder.
So before calling it a "scam" or a "gem", look deeper: it’s not just about charts, it’s about who’s building, who’s governing, and what’s next.
