Do Kwon of Terra makes a big bet on LUNA staying over USD 88

Do Kwon, the CEO of Terra (LUNA), has agreed to a pretty significant wager with a Twitter user that the price of LUNA will not fall below what it is presently in a year.

“Who wants to bet a million dollars that LUNA will be cheaper in a year than it is now?”

Sensei Algod, a crypto trader and popular pseudonymous Twitter user who styles himself as a “semi retired degen,” asked the question on Twitter on Sunday.

Terra’s co-founder responded just over an hour later, stating, “Cool, I’m in,” before adding that he would want to bet 90% of “whatever your net worth is.”

The Terra protocol is well known as the stablecoin system that allows terraUST, and LUNA is its native token (UST).

Unlike most other digital assets, LUNA’s price is not in the red for the year after a solid February performance. The coin has gained only 0.05 percent year to date, at a price of USD 91.48 (as of 10:30 UTC) – essentially constant.

The wager with Do Kown came after Sensei Algod repeatedly referred to LUNA and UST as “ponzi schemes” that can only work as long as there is more demand for the tokens than supply. In tweets from February, the trader stated that if a Black Swan event occurs or if supply surpasses demand, the entire system will crumble.

 

“The best case scenario is that they cap UST to keep it manageable. However, it’s theoretically feasible that they issue hundreds of billions in USTs backed by a few billions in real liquidity,”

the anonymous Twitter user speculated at the time.

 

Following this week’s bet, Sensei Algod has continued to attack Terra and the UST stablecoin, accusing them of “creating 10 billion+ out of thin air” and calling their actions “hazardous.”

And, while it’s anyone’s guess what the price of LUNA will be in a year’s time, it appears like both parties are serious about the wager and intend to follow through.

After the bet was validated, the outspoken Terra CEO wrote to Sensei Algod, “All shitposting aside, respect for putting up.”

The popular crypto influencer Cobie has been picked as the custodian for USD 1 million each from Do Kwon and Sensei Algod, according to a Twitter conversation between the two sides.

By publishing his blockchain transaction from crypto exchange Binance to a wallet belonging to Cobie on Twitter, Sensei Algod later acknowledged that he had sent USD 1 million in the stablecoin tether (USDT) to Cobie.

Cobie also stated that the wallet he set up as the bet’s custodian had been “completely funded” by both parties shortly after.

“See you in a year,” Cobie concluded his post.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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