Terra’s Founder Is Betting Millions on LUNA Holding Its Highs

Key Takeaways

  • Terraform Labs CEO and founder Do Kwon has accepted a $1 million wager that the worth of Terra’s LUNA token might be larger than $88 in a single yr.
  • The wager was initiated by pseudonymous crypto investor Sensei Algod late Sunday. Each events have despatched $1 million to UpOnly podcast host Cobie.
  • Kwon has additionally accepted a $10 million wager underneath the identical situations with one other pseudonymous crypto investor, Gigantic Rebirth, however it’s but to develop into efficient.

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Terraform Labs CEO and founder Do Kwon has wager $1 million that the worth of Terra’s LUNA token might be larger than $88 on Mar. 14, 2023. 

Terra’s Do Kwon Bets on LUNA

Terra’s Do Kwon is putting a giant wager on LUNA. 

The Terraform Labs CEO and founder and excessive profile crypto dealer Sensei Algod have made a public wager on the longer term value efficiency of Terra’s native token LUNA. 

Sensei Algod initiated the wager late Sunday by making a public provide to wager anybody $1 million that the worth of LUNA can be decrease than it was on the time of the proposal in a single yr (it was buying and selling at $88 on the time). “Who needs to take a $1000000 wager that $luna might be a cheaper price in 1 yr than now?” they stated on Twitter, tagging Do Kwon and two different well-known Terra believers. Kwon agreed to the wager shortly after. 

“Cool, I’m in,” he responded, even later doubling down on the provide by saying that he would favor if they’d made the wager on 90% of Algod’s web price—a sum presumably bigger than a million {dollars}. Nevertheless, right this moment each events agreed to the wager’s phrases and every despatched $1 million in USDT to an escrow pockets managed by the favored crypto persona and UpOnly podcast host Jordan Fish, who operates underneath the alias Cobie.

Per the settlement, if the typical 24-hour value of LUNA is larger than $88 on Mar. 14, 2023, Cobie will ship the cash to Kwon, and if it’s not, he’ll ship it to Sensei Algod. 

Sensei Algod is one among many outstanding crypto buyers to have taken pictures at Terra previously, decrying the challenge as a “Ponzi.” The criticism usually focuses on Terra’s tokenomics design, which makes use of LUNA as the primary stabilizing mechanism for the UST stablecoin. 

Terra critics say that because of how the peg stabilizing mechanism works, LUNA is liable to getting into a so-called demise spiral the place growing quantities of it should be burnt to take care of UST’s peg. A LUNA demise spiral would then additionally theoretically trigger the UST stablecoin to de-peg completely. To protect the UST peg, the Luna Basis Guard lately raised $1 billion to type a Bitcoin-denominated reserve for the stablecoin. 

Kwon is assured that LUNA gained’t crash and is keen to wager important sums of cash that the Terra critics are fallacious. Along with the wager on LUNA’s value efficiency, Kwon additionally contested Sensei Algod to a different a million greenback wager that UST wouldn’t de-peg by Mar. 14, 2023. “I shall even provide you with 2:1 odds,” he stated, difficult Algod to take the wager.

Just a few hours after agreeing to the wager with Sensei Algod, Kwon additionally accepted a $10 million wager with the identical situations because the Sensei Algod wager with a “retired dealer” popularly generally known as Gigantic Rebirth. Kwon stated that he would match a $10 million wager if Gigantic Rebirth funded Cobie’s escrow pockets. Nevertheless, Gigantic Rebirth is but to ship the cash at press time.

Whatever the final result of the bets, Kwon promised to donate $1 million to Angel Protocol—a Terra-based protocol for creating perpetual charity endowments—and spend $1 million extra on shopping for and burning Terra-based cash. “Not in it for the cash,” he stated.

Terra is at present buying and selling at $92.63 with a market cap of $34.5 billion. It’s up 17.1% within the final week.

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