Just two weeks after Terra’s ecosystem was brought to life, the price of Luna 2.0 experienced a new low as it declined by 77%. The asset class was trading at $4.33 at the time of writing, as per the data from CoinMarketCap.
Concerns can be seen among the investors of the new coin. The wider crypto market to has played a role in the dip.
As Rumors saying that Do Kwon is coming up with a new Terra network surfaced, the trust in the ecosystem seemed to be quite low.
FatMan, who himself claims to be a Terra insider, triggered these speculations after he pointed out that Kwon and his company Terraform Labs are lying that they would make the new network community-owned. He claimed that Terraform has 42M LUNA, which are worth over $200m.
Further, he revealed that Kwon was involved in the relaunch and even voted in favor of the hard fork using his LUNA holdings, which was completely against what the community calls for him to burn the tokens.
It is important to note that these claims still need to be verified, but they have already created an atmosphere of uncertainty, resulting in a major sell-off of the token. Do Kwon making his Twitter account private added to the concerns around the ecosystem.
FatMan some time back levied another allegation on Do Kwon, saying that the success he experienced was due to nepotism.
He said that Kwon came into the limelight after receiving an Infobank grant worth $550,000 for his startup dubbed Annify. He then also pointed out that at that time his startup had no product, questioning how he managed to get the grant. He says Kwon’s connections with Infobank got him the funding.
On the other hand, according to the latest reports, the Law enforcement authorities of South Korea are investigating an employee at Terraform Labs over the possible embezzlement of Bitcoin belonging to the company. The authorities are also working to find out whether Do Kwon had the slightest idea that the collapse is going to happen.
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Source: https://www.thecoinrepublic.com/2022/06/08/luna-2-0-in-turmoil-after-do-kwon-goes-ghost-on-twitter-something-brewing/