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.
Yes the price will react on this negative but it wont last because DK is not connected to LUNC as far as I know since there’s a new team handling this one.
It is certain that the price will surely fall because many investors might be forced to sell there holdings and that is if they are much aware of what is currently happening now.
Some persons might still keep holding not minding what the media is saying but all depends on the team if they can buy back any sell off to make sure that the price does not fall drastically which could be another reason that will make more users to hold on to the project one more time if they noticed that after the scene of the arrest, the coin still keep growing them many investors that might have think of losing hope on Terra will now start taking a move on it.