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. The price is already down though it might already late to sell especially if you bought at the peak price. I suggest to stay focus and continue to monitor the price, probably once they push through the update the price will rise again, so better to watch out.
But Lunc was created according to his idea, he doesn't directly run it because he ran away right after UST collapsed. Lunc and Luna are still run by his former members so will definitely be negatively affected by this news. Once Dokwon is officially arrested and prosecuted for these 2 coins will soon be removed from exchanges. If they don't want to get involved in dokwon scam related events