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Here Is Why Do Kwon Is Against the LUNA Burn Event! Will LUNA Price Find A Recover Pace ?

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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May 24, 2022

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Many anonymous sources have connected with Terra community member “FatMan” and exposed facts about Terraform Labs co-founder Do Kwon’s monthly payments to quantitative trading firm Jump Crypto, as well as their participation in the UST meltdown. Terra’s LUNA pricing has not recovered as a result of Proposal 1299

Terra Researchers Express Their Outrage Against Do Kwon

TerraUSD (UST), an algorithmic stablecoin, saw a massive drop a week ago, where the token lost its $1 peg, along with Terraform Labs’ tokens LUNA and UST lost a total market value of $39.1 billion in a week.

This episode has been dubbed as the “first crypto bank run” in history, and it had a devastating effect on Terra’s LUNA price, which fell from about $100 to below $0.0002 in only a few weeks

Now, the Terra Research forum user “FatMan” has the information on Terra’s co-founder Do Kwon and the Jump Crypto deal, which he shared on Twitter through @FatManTerra.

Do Kwon, according to the research, repays Jump Crypto with an agreed monthly LUNA amount. More information about these transactions are yet to be released by @FatManTerra.

Jump Crypto allegedly misled the retail investors into losing billions on LUNA and UST, according to an Agora Terra forum member. The community members still have to produce proof of transactions that link Jump Crypto to the UST meltdown.

Terra Labs Suggestion Implementation Gets Delayed

Terraform Labs proposed suggestion 1299 in order to free the UST locked on side chains. Terra validators stopped Inter Blockchain Communication (IBC) as a stop gap measure during the massive meltdown. The request was approved, however owing to technical difficulties, it was not implemented today.

Osmosis alone accounts for 154.7 million LUNA and UST in all side chains. The “Revival Plan,” which compensates holders for losses in the recent attack, does not cover Terraform Labs tokens that are locked on the side chains.

This collapse led to the UST and LUNA tokens that are stranded on side chains being missed out from the launch snapshot, causing community members to lose money.

The success of Terra’s LUNA price recovery depends on the execution of rescue proposal 1299.

LUNA Burn Not A Best Idea

The Terra community has condemned Do Kwon for his decision to exclude the algorithmic stablecoin UST from the final Terra ecosystem recovery approach.

On Twitter, members of the community have notified Kwon that they may help Terra’s recovery by burning LUNA. Do Kwon responded by informing the Terra community and his 1 million Twitter followers that LUNA sent to burn addresses was lost and that burning these tokens was not a smart idea.

The community has opposed Kwon’s concept for Terra’s revival, Terra Ecosystem Plan 2. Over 52.6 million people did not vote on Proposition 1623, while 35.2 million voted “No with Veto.”

This brings the total number of negative votes to 87.8 million, representing almost 33% of the community’s dissatisfaction with the proposal for Terra’s LUNA price recovery.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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