Terra Luna is still making headlines for all the bad reasons. It is struggling to keep appearing on the charts after suffering a massive price drop that wiped out more than 95% of its value in weeks. However, the Terra team led by Do Kwon is now facing a massive backlash from the crypto community.
Do Kwon knew LUNA and UST would collapse
According to leaked documents, Do Kwon, Terra Luna and UST dissolved Terraform Labs a few days before a crash. This leak caused tremors across the Terra community and the crypto market in general. No one really thought that Do Kwon could do this. What’s even more interesting is that he didn’t tell the community about it.
Can Terra (LUNA) be a rug pull?
The details of the leak were published in a Reddit post with more information on documents regarding the dissolution of Terraform Labs in South Korea. According to the documents that emerged, Do Kwon filed to dissolve the company on April 30. On May 4, the application was finalized and Terraform Labs ceased its presence in South Korea. However, Do Kwon moved the company to Singapore, but did not bother to get a license there.
Further details revealed that Do Kwon transferred 52,189 BTC to the Gemini exchange through the Terra Foundation. He also transferred another 28,205 BTC to Binance. The total value of the transferred cryptocurrencies was $2 billion and was kept as backup support to support the LUNA and UST price in the event of a crash. The community is now wondering if these cryptocurrencies were really used for their intended purpose or if their transfers were designed to rob the Terra community under a false guise. On the other side of the picture, you cannot move the company to another country without disbanding it. It may be unfortunate timing for Terra’s CEO.
Terra Luna collapse tarnished the market reputation
Luna’s collapse along with the stablecoin UST backed by UST has left many in the industry to question the ability of various cryptos to withstand tough market changes. Moreover, the chronological order of events involving Do Kwon has put the crypto market in a bad mood. Many crypto critics have long viewed the market as an area of economic terror filled with scams and rug pulls.
As we reported in cryptokoin.com news, the announcement of a proposal to revive LUNA and UST has raised the price of both cryptos by over 5%. . We covered the details in this article.
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