Normally the price of the LUNC coin will surely drop, the normal reaction of its investors or holder of the coin is that they will surely dump the coin, and it will lead to a very bad market response because of the situation. No one will think positive right now because of this news so if i were you i will sell the coin.
Yeah, that should be the normal trend, market-price dumping, if an arrest warrant is issued against its founder. But to my surprise, LUNC even has a 27.5% gain today. Isn't that abnormal? Somehow this increase in price reminds me that this cryptocurrency is now shitcoin subject to whale manipulation.
It could possible be a dead project with no developer or a successor will inherit the failing project. If Do Kwon is arrested, I'm sure Luna Classic value will be affected especially that Terra community is very uncertain right now. I don't expect much from that failing project, People are just taking advantage right now at Terra but I don't see people who will b e attached to it's main project idea after the it failed it's project fundamental.
LUNC is already been a dead project ever since a new LUNA is forked. Dev are just keeping this project probably because they still hold majority of these token and might serve as a cash cow.