Exactly one year ago, on March 14, 2022, LUNA was the hottest cryptocurrency on the market, with the token price breaking new records every day. During the period, Do Kwon, founder of Terraform Labs, bet with KOL Sensei Algod that the price of LUNA will break through $88 within a year. The two agreed to spend $1 million each and have the funds held in an escrow account in the presence of influencer Cobie.
One year ago today: Daoquan bet $1 million #LunaPrice over $88 https://t.co/qLeWisIRZ7
— Kyptos (@azcoinnews) March 15, 2023
However, just two months later, in May 2022, Terra’s stablecoin UST crashed, with global investors losing an estimated $40 billion. Terra Ecosystem provides 20% interest for depositing UST through Anchor Protocol to attract user funds. As a result, the price of LUNA plummeted, even dropping to $0.
As a result, Do Kwon lost immediately after placing his bet and is currently on the red list of South Korean prosecutors and sued by the US Securities and Exchange Commission (SEC).
So far, the fate of the $2 million wagered remains unknown. According to Bryant, on April 4, 2022, he transferred $2 million from Do Kwon and Algod to FTX. It was not possible to confirm whether Algod received the funds before FTX went bankrupt.
In a recent tweet, Algod wrote:
“I made a $1 million bet with Do Kwon on the first anniversary. In hindsight it was easy to say Luna would go down, as you can see in the comments I got ridiculed for my oft-wrong massive reorganization, which is a good one lessons. But the results are well known.”
This is a cautionary tale about the risks involved in investing in cryptocurrencies and the importance of doing thorough research before making any investment. While huge gains are possible in the cryptocurrency market, it also comes with an equally high risk of loss.
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according to Kyptos
