Terraform Labs CEO and founder Do Kwon has accepted bets worth millions of dollars on Terra’s cryptocurrency LUNA trading higher than US$88 in a year’s time, which was the price of the token at the time of the bet.
See related article: Is Terra — whose LUNA coin is now at another all-time high — really where the smart money is?
Fast facts
- A crypto trader who goes by Sensei Algod on Twitter made a US$1 million wager against LUNA on Twitter, betting on the devaluation of the asset, which Kwon accepted.
- Popular crypto personality Jordan Fish, also known as Cobie, has prepared an escrow wallet where Do Kwon and Sensei Algod each sent US$1 million in USDT.
- Kwon has accepted another US$10 million bet from a crypto trader who goes by GCR under the same conditions.
- Some critics of Terra have panned the ecosystem for relying on burning LUNA to stabilize and mint algorithmic stablecoin TerraUSD (UST), claiming that an increased demand in UST would cause a depletion of LUNA, risking UST to lose its peg.
- Last Friday, Terraform Labs donated 12 million LUNA (US$1.1 billion) to the Luna Foundation Guard to grow reserves for sustaining the peg of its stablecoins.
- LUNA is currently priced at US$89.22 at press time, ranked seventh in market capitalization, according to CoinGecko.
See related article: Anchor boosts Terra DeFi amid minor crypto market dip