Do Kwon, co-founder and CEO of Terraform Labs, the entity behind Terra (LUNA), found himself in a peculiar position with his bet that LUNA would stay above USD 88 – as the coin dropped over 90% in a single day.
In mid-March, Do Kwon took a bet with pseudonymous Twitter user Sensei Algod, a self-proclaimed “semi retired degen,” on whether LUNA would be above USD 88 by mid-March 2023. Each risked USD 1m on the bet.
LUNA, which was trading above USD 80 just days ago, has tumbled after a wave of sell-off resulted in the ecosystem’s algorithmic stablecoin UST losing its dollar peg.
At 14:41 UTC, the 33rd coin by market capitalization has lost a whopping 85% over the past 24 hours alone, trading at USD 4.37. However, it recovered from the USD 0.83, that was reached earlier today.
Do Kown took the bet after Sensei Algod called LUNA and UST a “ponzi” that can only function as long as there is more demand for the tokens than there is supply.
“The moment either a blackswan event happens or supply>demand it will be a race to the bottom and luna orderbooks wont be able to hold the billions in selling pressure from UST,” the trader said in a tweet in mid-February.
Nevertheless, this was not the only bet Do Kown wanted to take. The CEO also invited pseudonymous Twitter user and crypto trader K A L E O to bet on whether LUNA will see the USD 10 mark again in 2022.
Luckily for Do Kown, K A L E O didn’t take the bet. However, the trader, whose prediction has come true, recently made another forecast that LUNA will bounce back.
“Also, I’ll be a contrarian once again and say LUNA bounces back some from here,” they said.
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