LUNA was down more than 95% for the week. Does it mean Do Kwon will lose his million dollar bet?
Efforts to recover the UST continue as LFG empties all Bitcoins from the treasury wallet.
What about Do Kwon’s recent multi-million dollar bet?
LUNA fell from $87 to $4.5 in less than a week.
Kwon made a $1 million bet with Sensei Algod that LUNA would be over $88. The founder then made another bet made by crypto trader “GCR”. This time, however, the stakes went up 10x. Kwon transferred $10 million worth of stablecoins to be held in escrow until awaiting the outcome of the bet.
Sensei Algod said that after the collapse of LUNA, his confidence was lost. GCR offered $50 million and $20 million in bets shortly thereafter. Kwon did not accept the offer.
Crypto researcher Hasu had warned that “Unsecured Stablecoins” would not work. Hasu said he would defend the UST first.
Many believe that the LUNA will rise again. One of these people is CNBC’s Crypto Trader host Ran Neuner.
“Each attack makes LUNA more resilient. It happened to BITCOIN many times in the early days. It’s part of the process!”.
While the algorithmic stablecoin gained significant momentum, it also caught the attention of critics. Many people believe that there are problems with assets like UST. There are two reasons. It is not supported by the reserve, and proprietary algorithms cannot always guarantee that the market is working.
Mark Cuban says the algorithmic stablecoin IRON is losing money after pegging at the US dollar following a massive sell-off by major investors.
Recent market developments have put a lot of pressure on the TerraUSD peg. The De-Pegging incident that many feared has finally come true.
Critics noted that Terra’s measures could add to the current selling pressure in the market and push the price down further.
But Kwon shared with the co-founder of Delphi Ventures, Jose Macedo, “LFG made UST more robust, but also temporarily more centralized.”