Exactly one year ago, on March 14, 2022, LUNA was the hottest cryptocurrency in the market, with daily token prices breaking new records. During that time, Terraform Labs founder Kwon Do-Hyung (Do Kwon) made a bet with cryptocurrency influencer Sensei Algod on Twitter, wagering that the price of LUNA would exceed the current price of $88 in a year. The two agreed to put up $1 million each, and another influencer, Cobie, acted as a witness and held the funds in a managed account.
However, just two months later, in May of 2022, Terra’s stablecoin UST collapsed, causing global investors to lose an estimated $40 billion. The Terra ecosystem had provided 20% interest when depositing UST through Anchor Protocol, which had lured in users’ funds. As a result, LUNA’s price plummeted, falling to $0.
Do Kwon, who had made the bet with Algod, collapsed soon after the bet was made, and is now on the red wanted list of the Korean prosecution and indicted by the US. SEC.
The fate of the $2 million that had been put up for the bet remained uncertain for some time. According to Kobe, on April 4, 2022, he transferred the $2 million from Do Kwon and Al-God to FTX. It was not confirmed if Algod had received the money before the FTX bankruptcy.
In a recent tweet, Algod wrote, “A one year anniversary since my $1mn dollar bet with @stablekwon while it’s in hindsight easy to say Luna would collapse as you can see in the comments I was ridiculed as redacted the masses are often wrong, was a great lesson. But the result is as everyone knows.”
This serves as a cautionary tale about the risks involved in investing in cryptocurrencies and the importance of conducting thorough research before making any investments. While the cryptocurrency market has the potential for significant gains, it also carries the risk of significant losses.
This article was republished from azcoinnews.com
