{"id":10737,"date":"2022-05-12T20:52:07","date_gmt":"2022-05-12T20:52:07","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/do-kwons-usd-1m-bet-doesnt-look-good-as-luna-crashes\/"},"modified":"2022-05-12T20:52:09","modified_gmt":"2022-05-12T20:52:09","slug":"do-kwons-usd-1m-bet-doesnt-look-good-as-luna-crashes","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/do-kwons-usd-1m-bet-doesnt-look-good-as-luna-crashes\/","title":{"rendered":"Do Kwon’s USD 1M Bet Doesn’t Look Good as LUNA Crashes"},"content":{"rendered":"
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Source; AdobeStock \/ Alexey Novikov<\/figcaption><\/figure>\n

\u00a0<\/p>\n

Do Kwon, co-founder and CEO of Terraform Labs<\/strong>, 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.<\/p>\n

In mid-March, Do Kwon took a bet with pseudonymous Twitter user Sensei Algod, a self-proclaimed \u201csemi retired degen,\u201d on whether LUNA would be above USD 88 by mid-March 2023. Each risked USD 1m on the bet.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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LUNA 7-day price chart. Source: coingecko.com<\/figcaption><\/figure>\n

Do Kown took the bet after Sensei Algod called<\/a> LUNA and UST a \u201cponzi\u201d that can only function as long as there is more demand for the tokens than there is supply.<\/p>\n

“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.<\/p>\n

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People are basically betting that Terra ecosystem becomes big enough to carry UST with it.<\/p>\n

Best case is they cap UST so that it’s still manageable. But in theory it’s possible they issue hundreds of billions UST backed by a few billions in real liquidity. pic.twitter.com\/SFZX7UHjNb<\/a><\/p>\n

\u2014 Algod\ud83e\uded0 (@AlgodTrading) February 16, 2022<\/a><\/p><\/blockquote><\/div>\n

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.<\/p>\n

<\/oembed><\/figure>\n

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.<\/p>\n

“Also, I’ll be a contrarian once again and say LUNA bounces back some from here,” they said<\/a>.<\/p>\n

____<\/p>\n

\u00a0<\/strong>
–\u00a0UST and LUNA Keep Collapsing, No Word from Do Kwon on Promised ‘Recovery Plan’
– Conspiracy Theories Abound as Terra Tries to Save UST<\/p>\n

– Luna Foundation Loans Out BTC to Defend Bitcoin Peg, Faces Community Backlash
– Bitcoin Extends Sell-Off Despite Luna Buying, Strong On-Chain Data<\/p>\n

– Terra\u2019s USD 10B Bitcoin Bet May be Both a Curse and a Blessing
– USDT vs. USDC vs. UST: How Do They Compare?<\/p>\n<\/p><\/div>\n