Terraform Labs CEO closes $10M bet on LUNA price

Terraform Labs CEO Do Kwon finalised a bet with GCR, a crypto personality (short for Gigantic Rebirth) of $10 million. Do Kwon is betting on a higher future price of Terra (LUNA/USD).

Both parties have sent $10 million in stablecoins to an escrow account. Kwon sent USDT and GCR sent USDC. The account is an Ethereum (ETH/USD) wallet owned by a veteran crypto trader known as Cobie. Kwon sent the funds today, and GCR – yesterday.

LUNA was the only gainer in the top 10 today

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

At time of publication, LUNA was trading for just under $92. Its weekly gains stand at 12.92%. It was the only gainer in the top 10 coins by market cap this morning.

Naturally, Kwon is betting in favor of the price of LUNA, his own project. His adversary is betting against an increase. When the wager was accepted, the price of LUNA was about $88.

Kwon’s $1M bet with Sensei Algod

Yesterday, Kwon finalised a smaller bet on the price of LUNA on the same terms with a person in the crypto space who goes by the pseudonym of Sensei Algod. Yesterday, they both sent $1 million each to the same escrow account. A crypto personality known as Cobie is acting as the escrow for the wagered funds.

The terms are that if the price of LUNA drops within a year, Sensei Algod will win the bet. If the price of LUNA is higher in one year’s time, Kwon will be the winner.

On March 14, 2023, the time-weighted average price (TWAP) for LUNA on Coingecko will be used to determine the outcome. TWAP refers to the average price of an asset within a specific time.

The crypto personality Cobie volunteered an escrow account for the wagered funds. Etherscan shows each party deposited $1 million in Tether.

About Terra

Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies.

It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand.