Terraform Labs To Sell Four Businesses Amid Bankruptcy Proceedings – Crypto News – Crypto News
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Terraform Labs To Sell Four Businesses Amid Bankruptcy Proceedings Terraform Labs To Sell Four Businesses Amid Bankruptcy Proceedings

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Terraform Labs To Sell Four Businesses Amid Bankruptcy Proceedings – Crypto News

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Terraform Labs is looking to offload Pulsar, Station, Warp, and Enterprise.

Terraform Labs, the firm behind the collapsed Terra blockchain, is looking to sell four of its businesses amid Chapter 11 bankruptcy process.

On July 9, the company announced it is seeking a buyer for Pulsar Finance, a cross-chain portfolio tracker that the company acquired in November 2023 in an attempt to rebuild the ecosystem after its collapse. Terraform Labs (TFL) is also looking to sell Station, a non-custodial Cosmos-based hot wallet, Enterprise, a no-code DAO management platform, and Warp, an on-chain automation protocol for executing smart contracts.

“The sale process represents a significant step in TFL’s efforts to maximize value for its creditors and other stakeholders, as part of its broader wind-down of operations,” Terraform Labs said. “Such a sale is part of TFL’s broader wind-down of operations under the terms of its settlement with the U.S. Securities and Exchange Commission.”

The news failed to move LUNA, the native token of the Terra 2.0 network, which posted a modest daily gain of 1.4% in line with the broader crypto markets. However, LUNA is down 34% in the past 30 days at a $263 million market cap — roughly where it was in November 2023 when TFL purchased Pulsar Finance.

LUNA/USD. Source: CoinGecko.

During its heyday in April 2022, TFL’s Layer 1 network, Terra Classic, boasted a total value locked (TVL) of more than $31.3 billion, buoying the Luna Classic token (LUNC) to a $41 billion market cap.

Its impressive growth was propelled by the runaway success of its uncollateralized “algorithmic” stablecoin UST, which grew to a more than $18.7 billion market cap on the promise of a 20% annual return for holders.

However, in early May, Terra Classic and UST shed more than 97% of their value over just a few days amid an abrupt loss of confidence in UST’s uncollateralized design. According to DefiLlama, just $2.15 million remains on the network today.

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Terra Classic TVL. Source: DeFi Llama.

Terraform Labs filed for bankruptcy in the United States in January. In April, Do Kwon, the co-founder of TFL, and his company were found liable for orchestrating a $40 billion fraud. Do Kwon was also sentenced for misleading investors, and acting recklessly.

In early June, Terraform settled with the U.S. Securities and Exchange Commission for $4.47 billion, including roughly $400 million from Do Kwon.

Related: How Terra is Trying to Rise from its Ashes with Terraform Labs’ New CEO Chris Amani

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