Terraform Labs CEO Bets $11 Million on LUNA’s Rise

Do Kwon bets $11 million on LUNA's future price, with Cobie as arbiter.

The CEO of Terraform Labs, Do Kwon, accepted a challenge from a user going by the handle Sensei Algod regarding LUNA’s prospects. He was willing to lose $1 million if, within a year, the asset’s price had fallen. The stake soon rose to $11 million.

As @stablekwon already agreed on the 1mn

Someone in my tg chats wants to make a 6fig bet if there are any takers

— Sensei Algod (@AlgodTrading) March 13, 2022

At the time of the bet, LUNA traded at about $88. Do Kwon would win if, as of March 14, 2023, the asset’s volume-weighted average price was above that level.

The arbiter was opinion leader Cobie, also known as Crypto Cobain. He received $1 million in USDT from each participant to his controlled wallet.

Address for @AlgodTrading vs @stablekwon Luna price bet appears fully funded

See u in a year https://t.co/AfTZLBGODI

— Cobie (@cobie) March 14, 2022

Do Kwon also agreed to raise the stake to $10 million under the same terms in a dispute with trader GiganticRebirth. As of writing, the CEO of Terraform Labs had not yet funded it.

Sure, fund @cobie ‘s wallet and I will match

Gluck

— Do Kwon 🌕 (@stablekwon) March 14, 2022

Sensei Algod is known as a critic of Tether (USDT) and TerraUSD (UST). He believes that stablecoin issuers “print money from thin air.”

Will do a more in depth thread on $luna/ $ust and how dangerous their practices are with the LFG foundation

did not even know it was this bad, but they are basically printing 10bn+ out of tin air

— Sensei Algod (@AlgodTrading) March 14, 2022

UST maintains its peg to $1 by burning LUNA tokens to issue “stablecoins.” In periods of high demand, this process takes on large-scale forms. Critics such as Sensei Algod argue that this approach can lead to a sharp drop in LUNA’s price and the loss of UST’s $1 peg as dictated by the algorithm.

Do Kwon pledged that, regardless of the bet’s outcome with Sensei Algod, he would donate $1 million to charity via @angelprotocol and spend $1 million on buying Terra altcoins and burning them.

Regardless of the outcome of the bet, I will donate $1M to @angelprotocol charity and spend $1M on buying Terra altcoins and burn them on March 14th 2023

Not in it for the money

— Do Kwon 🌕 (@stablekwon) March 14, 2022

According to DeFi Llama, the volume of locked funds in the Terra ecosystem over the past month has risen more than 80%, to $25.78 billion. By this measure, the project ranks second, behind Ethereum ($111.79 billion).

As a reminder, in March Terraform Labs transferred $1.2 billion in LUNA to Luna Foundation Guard to support UST stability. In February, the nonprofit organization raised $1 billion for the same purpose.

Earlier, cryptocurrency exchange FTX added support for the algorithmic stablecoin UST.

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