Do Kwon's USD 1M Bet Doesn't Look Good as LUNA Crashes

Source; AdobeStock / Alexey Novikov

 

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.

LUNA 7-day price chart. Source: coingecko.com

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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Learn more: 
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