Terra’s new token LUNA 2.0 has lost 54% in value over the past two weeks after hitting $11.33 per unit on May 30. Meanwhile, whistleblower Fatman has accused Terra’s co-founder Do Kwon of paying out $2.7 billion a few months before the UST de-pegging incident. However, Kwon has kept tabs on Fatman’s allegations, claiming the allegations are “categorically false.”
The value of the LUNA 2.0 token fell by 54% in the last 2 weeks
Rebirth token LUNA 2.0 has been extremely lackluster in terms of market performance over the past two weeks. However, as Bitcoin.com News reported six days ago, myriad decentralized finance (defi) protocols have rejoined the ecosystem.
Terra’s 2.0 chain locked around $1.32 billion in the Stader Defi application, according to defillama.com statistics. The Terra Classic chain as of today has a total value of $10.54 million locked in Defi, with $3.11 million locked on Terraswap and $2.47 million locked in Anchor.
Over the past two weeks after LUNA 2.0 peaked at $11.33 per unit, the new LUNA has lost 54% over the past 14 days. It is still down 86% from the all-time high of $18.87 per coin when the 2.0 blockchain was first launched.
At the time of writing, LUNA 2.0 has a global trading volume of $135 million, which pales in comparison to pre-fallout Luna Classic (LUNC) volume. Top exchanges in terms of trading volume for LUNA 2.0 include Bitrue, Okx, Huobi Global, Kucoin, and Gate.io. The top five LUNA 2.0 trading pairs today include USDT, USD, USDC, EUR and ETH respectively.
Do Kwon, co-founder of Terra, continues to face fraud allegations – whistleblower Fatman claims Kwon was paid $2.7 billion before the UST collapse
While LUNA’s market performance hasn’t been that hot, Do Kwon is still being accused of shady acts by the whistleblower, alongside a host of crypto assets suffering from the bear market Fat man.
Should we be using the term kwonzi more often? I propose a definition.
Kwonzi: a financial system with borrowed elements and a negative-sum nature similar to a Ponzi, but not a Ponzi — cleverly disguised by sophisticated manipulation, legitimate technology and jargon.
— FatMan (@FatManTerra) June 12, 2022
Three days ago, Bitcoin.com News also reported on the US Securities and Exchange Commission (SEC) reportedly investigating the collapse of terrausd (UST) and the company Terraform Labs (TFL). On June 11, 2022, Fatman accused Kwon of diverting $2.7 billion from the Terra project a few months before the UST fallout.
“Some of you thought $80 million a month was bad,” Fatman said tweeted. “That’s nothing. That’s how Do Kwon paid out $2.7 billion ($33 x $80). [million]) over a period of just a few months thanks to Degenbox: the perfect mechanism to withdraw liquidity from the LUNA [and] UST system and into hard money like USDT.”
Fatman says the defi-borrowing protocol Abracadabras Degenbox and tokens like SPELL and MIM were used to give the UST pair “deeper exit liquidity.” The whistleblower said Kwon was able to disburse $2.719 billion through the MIM/UST pool without postponing the bond.
“UST is the future,” he said. Decentralized money is solid money, he said,” Fatman said continued. “UST will not unbind, he told you. “Centralized stablecoins will eventually trick you.” So why did he withdraw $2.7 billion from UST in USDT and USDC?”
Do Kwon denies cash-out allegations and says he really doesn’t care much about money
However, Do kwon Has refuted the claims he paid out $2.7 billion before the UST crash. “That should be obvious, but the claim that I cashed out $2.7 billion from anything is categorically false,” Kwon said on the same day Fatman accused him. Kwon also shut down his Twitter account private mode and only people who include kwon tags in a tweet can reply.
“Two conflicting claims seem to exist: Do’s wallets are doxxed, and he still owns most of his Luna from the airdrop [or] Do dumped all his tokens to make billions,” Kwon continued. “Ideally, one lane should be selected.” The Terra co-founder added:
To reiterate, the only thing I’ve earned in the last two years is a nominal cash salary from TFL, and I’ve deferred most of my Founder’s tokens because a) I didn’t need it and b) I didn’t need an unnecessary fingerprint wanted to cause -showing ‘he has too much.’
On Twitter, people have been debating how Kwon is much more humble now compared to calling people “poor” during LUNA’s peak. Others were to discuss Kwon reportedly “bent over” Abracadabra founder Daniele Sesta and SPELL bagholders.
The claims state that tokens such as SPELL, MIM, and Abracadabra’s Degenbox were used to help Kwon convert UST into harder stablecoin assets. Abracadabra and Sesta have had their share of controversies in the past with the Wonderland TIME debacle.
[PEOPLE YOU MEET ON THE WAY UP, YOU MEET ON THE WAY DOWN]
Do Kwon (Ponzi @stablekwon) no longer cares about money. Remember his favorite insult was “poor”; he didn’t argue @Frances_Coppola because he “didn’t debate the poor” and “had no change for them”.https://t.co/B7R8JWDWJT— Nassim Nicholas Taleb (@nntaleb) June 12, 2022
Kwon, co-founder of Terra, stressed on Twitter that nothing said about his payout is true. “I hope that’s clear — I didn’t say much because I don’t want to look like a victim, but I also lost most of what I had in the crash,” Kwon said closed On Saturday, he paid out $2.7 billion in his rebuttal of the claims.
“I’ve said this several times, but I really don’t care much about money. Please say things that are proven and true – if you are spreading untruths that will only add to the pain of all who have lost,” Kwon said added.
In the meantime, Fatman continues to accuse Kwon of dirty tricks and whistleblowers has not stopped criticizing Kwon’s alleged actions or his actual comments and rebuttals.
What are your thoughts on LUNA 2.0 and the recent allegations against Do Kwon? What do you think of Kwon’s rebuttal? Let us know what you think about this topic in the comment section below.
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