Terra Founder Bets $1 Mln On LUNA Price Staying Above $88 Until Next Year

Terra founder Do Kwon just lately positioned a $1 million guess with a dealer on twitter that value of LUNA, the native token on the Terra blockchain, will keep above $88 till a 12 months from now. Kwon responded to a challenge issued by @AlgodTrading.

The 2 parties then proceeded to lock of their guess with @cobie, co-founder of the crypto podcast UpOnlyTV, who confirmed the receipt of the $2 million in Tether. On March 14, 2023, @cobie will switch the total quantity to the successful celebration.

Kwon and Algod agreed to contemplate the 24 hour common buying and selling value of LUNA to settle the guess. The token is presently buying and selling at $93.8, just under lifetime highs.

Terra founder bets $1mln

Algod has repeatedly known as the blockchain a “ponzi scheme”, stating that the dollar-pegged Terra stablecoin (UST) is not going to survive a pointy selloff within the LUNA ecosystem. Their problem comes as an extension of this stance.

Algod additionally obtained presents from different merchants for his or her problem, though it was not instantly clear whether or not cash had modified palms.

LUNA rallies on excessive yield supplied by Terra

The LUNA token has been on a tear, rallying as a lot as 50% over the previous month and coming near a document excessive of over $100. Shopping for into the token was pushed by demand for the comparatively excessive yields supplied by deposits in Terra-based stablecoins.

Particularly, the Anchor Protocol (ANC), which relies on the Terra blockchain, presents a market-beating, practically 20% yield on UST deposits. LUNA can be utilized to stake on the platform, and may also be burnt to provide UST, at a ratio of $1 of LUNA for $1 of UST.

Current market volatility attributable to the Russia-Ukraine battle has boosted demand for stablecoins, inflicting merchants to hunt UST publicity via LUNA. The Terra group has additionally been lively in supporting UST, just lately constructing a $1 billion Bitcoin reserve to keep up the near-20% yield supplied by ANC.

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