Terra Cofounder Do Kwon accepted a bet on LUNA’s price.Sensei Algod bet $1 million that LUNA’s price would be lower than its current value a year from now.A $10 million bet followed, from GCR another trader and twitter user.LUNA’s price has been rising exponentially in recent months and has been the subject of much discussion.
Terraform Labs co-founder Do Kwon has accepted a $1 million bet that the LUNA token would not be lower in price one year from now. Sensei Algod, a market investor, placed the wager on Twitter, asking for any takers who thought that he would be wrong about LUNA being lower in value next year.
Do Kwon simply said, “cool, I’m in” in response to the bet. He then said that both he and Sensei Algod should give the $1 million, in USDT, to Cobie, and whoever wins will receive their winnings from the latter. Both agreed, and Cobie offered his address.
— Cobie (@cobie) March 14, 2022
Do Kwon also responded to a bet by another trader on the same idea. GCR, the name the trader goes by, said he would wager $10 million, donating half to charity, if LUNA isn’t lower in value a year from now. Do Kwon accepted, asking him to fund Cobie’s wallet.
Sensei Algod has said in the past that the LUNA and its associated stablecoin UST are part of a Ponzi scheme. He offered his reasoning in a Twitter thread last month, saying that hodlers are
“expecting is that demand will infinitely keep exceeding supply, the moment supply exceeds demand people will panic and start mass redeeming ust for luna or usdt.”
He then compared LUNA and UST to the TITAN project, which was one of the most notable scams of recent times. When supply exceeds demand, it’s a “race to the bottom” and the LUNA order books won’t be able to hold the billions in selling pressure from UST, Sensei Algod says.
Terra in the Middle of a Roller Coaster
The bet comes at a time when LUNA’s price has been experiencing a significant rise. The LUNA token has nearly doubled in value from a month ago, going from $51.9 to its value of $92.5 at the time of publishing. Between 2019 and 2021, the value remained flat and experienced some heavy volatility after 2021.
Terraform Labs has also been the subject of a subpoena filed by the United States Securities and Exchange Commission (SEC). The regulatory authority handed Do Kwon a subpoena in November 2021 at a conference in New York.
Terraform Labs filed a motion to dismiss the subpoena relating to its Mirror Protocol, but a New York judge ordered them to comply. Mirror Protocol is a DeFi platform that allows for the creation of synthetic assets, including stocks, which is where the SEC takes issue.
In other news, Terraform Labs donated 12 million LUNA to the Luna Foundation guard, which will be burnt and minted into $1.2 billion UST. With stablecoins also on the U.S. government’s radar, there might be more trouble waiting in store for the company.