Finance

Do Kwon, CEO Of Terra, Is Betting $1 Million That Perhaps The LUNA Price Would Not Fall Under $88

03/22/2022
Bitcoin Ethereum News
  • The price of LUNA soared 25% to a new all-time high of $104.58 when Do Kwon announced a number of funding activities to support UST, Terra’s algorithmic stablecoin linked to the US dollar.
  • Algod then challenged anyone to place a $1 million bet that LUNA will be cheaper in a year. Do Kwon accepted the challenge and went one step farther in his mockery. I’d rather inquire what your net worth is and place a 90% bet.
  •  Do Kwon stated that he did not enter the wager for monetary benefit. He also stated that regardless of the outcome of the bet, he intends to contribute $1 million to charity. He’ll use the remaining, $1 million, to purchase Terra altcoins and burn them on March 14, 2023.

Do Kwon, Terraform Labs’ co-founder and CEO, has staked $1 million on the price of LUNA not falling below $88 in a year’s time. Cool. I’m in, Do Kwon responded on Twitter on March 13 to a challenge given by a self-described semi-retired degen known as Sensei Algod.

LUNA, the Terra ecosystem’s native coin, was labeled by Sensei Algod as an overpriced Ponzi that would fail. LUNA is a glorified TITAN; when people lose faith in it, it drops to zero, he sneered, alluding to Iron Finance’s token, which plummeted from $65 to $0 last year.

LUNA Has Been Dubbed A Overly Expensive Ponzi Scheme

Claiming to be one of the first to spot gigantic Ponzis OHM, TIME, and LooksRare. Algod then challenged anyone to place a $1 million bet that LUNA will be cheaper in a year. Do Kwon accepted the challenge and went one step farther in his mockery. I’d rather inquire what your net worth is and place a 90 percent bet. However, it’s possible that this is already the case. In addition, I’m willing to take the bet that UST [Terra’s dollar-pegged stablecoin] will not be depegged at the same time next year. I’ll even give you a 2:1 chance.

He never received a reply. However, once the two parties reached an agreement on the parameters of the initial wager, they locked in their bets at a price of $88 per LUNA, according to CoinGecko statistics at the time. Jordan Fish, often known as Cobie, a crypto expert, and influencer, volunteered to serve as custodian. He gave Do Kwon and Sensei Algod an address where they could send the equivalent of $1 million in USDT apiece. Cobie later acknowledged that the address was completely financed after the Terra CEO was the first to do so.

If the price of LUNA as published by CoinGecko is more than $88, he [Cobie] delivers the USDT to me the next year on the same day; if not, he gives it to you, Do Kwon claimed. The terms were accepted by Sensei Algod. From March 14, 2022, to March 14, 2023, the wager is valid. Do Kwon stated that he did not enter the wager for monetary benefit? He also stated that regardless of the outcome of the bet, he intends to contribute $1 million to charity. He’ll use the remaining, $1 million, to purchase Terra altcoins and burn them on March 14, 2023.

This Is Not About The Wealth

On March 9, the price of LUNA soared 25% to a new all-time high of $104.58 when Do Kwon announced a number of funding activities to support UST, Terra’s algorithmic stablecoin linked to the US dollar. UST maintains its currency peg by burning or issuing LUNA tokens, which presents an arbitrage opportunity. The price of LUNA tends to climb as UST demand rises, as it is right now, and more LUNA is burned.

Some people have referred to the Terra economic model as a Ponzi scam. LUNA was trading at $95.12 as of press time, up over 1.5 percent from the previous day’s close. Since hitting a 2022 low of roughly $44 in late January, the coin’s price has more than doubled.

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Source: https://www.thecoinrepublic.com/2022/03/22/do-kwon-ceo-of-terra-is-betting-1-million-that-perhaps-the-luna-price-would-not-fall-under-88/