- The restart of the Terra blockchain failed to convince.
- LUNA2 also suffered a price crash and lost around 84% within 9 days.
- Meanwhile, new revelations about the scandal surrounding TerraUSD are constantly coming to the public.
The launch of LUNA2 was accompanied by swift confessions from various crypto exchanges. On the one hand, the providers were partly obliged to distribute the LUNA2 tokens to the investors, which they had received via airdrop. On the other hand, they probably had no other choice. If trade with LUNA2 had not started as soon as possible, this would have been tantamount to declaring the industry bankrupt.
So LUNA2 has not failed in terms of liquidity and trading venues. In the first few days, the picture was mixed, but this is not atypical for the start of trading of a cryptocurrency. But now the smoke has cleared and the assessment is confirmed that most investors are not building on such a shaky foundation.
In addition to the loss of confidence, the current market conditions are also aggravating. After all, bear markets are notoriously worse at coping with scandals and failure. After all, LUNA2 was able to regain some ground today and is quoted at just under 3 US dollars at the time of writing.
Do Kwon in the crossfire
As the head of Terra, he was always at the center of events. Do Kwon has had to take a lot since the fall of TerraUSD and the now renamed LUNC token. Apparently, it has become too colorful for him, because he recently switched his Twitter account to private.
However, he does not have to participate at all in the general public and Twitter community in order to remain a topic of conversation. Under the pseudonym “FatMan”, an activist continues to provide media and disappoint investors with piquant details about the causes of the debacle.
Recently it turned out that Do Kwon was probably warned from the very beginning that such a crash must happen. According to a report by JTBC, a leading developer has advised him to keep the interest rate of the Anchor protocol at 3.6%. As a result, Do Kwon allegedly decided on his own to increase the rate to the fabulous 20%, which attracted crowds of investors.
These and other allegations could not only serve as a replenishment for the gossip columns in the future, but could also have legal consequences if they are resilient and there should be a trial. It is much more likely that there will be further claims for damages by investors than criminal consequences.
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