Do Knwon Makes His Twitter Account Private After LUNA’s Downfall


In less than a month after the deployment of the new blockchain, LUNA 2.0, the price of the token has decreased by more than 77%. Earlier this year, the Terra blockchain was hailed as the future of cryptocurrencies as it seemed to promise various development breakthroughs. Then, the protocol was in for a big surprise when its UST stablecoin and LUNA crypto token crashed drastically.

The Terra Blockchain

Launched in 2018 by Terraform Labs and founded by co-founders Do Kwon and Daniel Shin, Terra was a cryptocurrency protocol used to provide access to stablecoins.

Recently, Kwon posted his official Twitter account private, which raises more suspicion that the price of the token may not be appreciated.

Based on market capitalization, the Terra protocol initially became one of the top ten blockchains in the world. Provided two unique tokens; the TerraUSD UST stablecoin and the utility coin LUNA, used for governance and to facilitate payments on the network.

Do Knwon Makes His Twitter Account Private After LUNA's Downfall
LUNA price continues an upward trend | Source: LUNAUSD on TradingView.com

Since its inception in 2018, the Terra blockchain had been performing very well until mid-May 2022, when the blockchain experienced a LUNA sell-off. The token price fell from around $120 to around $0.02 between 11the and 12the May.

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Some people believe that the crash was due to institutional investors “short selling” Bitcoin (BTC) for UST stablecoins in hopes of profiting from the performance of the Anchor project.

Decline of LUNA and introduction of the Terra 2.0 solution

After the freefall of Terra’s LUNA and UST coins, the blockchain released LUNA 2.0 via airdrop. The new token promised to allow users to recover their lost funds and replace its predecessor, the original LUNA coin.

According to data from Coingecko, the token has been experiencing a steady drop in price since its inception. At press time, the token had seen a 77% decline and is currently trading at $3.50 per coin. It is also down 17% from its 24-hour trading value.

Some of this decline is attributed to the impact of the broader bear market affecting all coins in the DeFi ecosystem.

Additionally, Do Kwon, CEO of Terraform Labs, faces challenging legal issues. And the South Korean police have warned that he could go to jail for the massive blockchain meltdown. In addition to that, the police are also investigating one of the Terraform Labs employees for theft of funds.

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FatMan, a pseudonymous self-proclaimed member of Terra, accused Do Kwon and his corporation. Terraform labs are misleading and lying about their intent for the new LUNA tokens. According to his Tweet, Terraform Labs (TFL) owns over 42 million LUNA worth over $200 million.

While they have yet to verify that their claims are valid, they have yet generated enough buzz to affect investor sentiment to sell their tokens.

Featured image from Pexels, chart from TradingView.com

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