Terra founder Do Kwon not too long ago 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 profitable get together.
Kwon and Algod agreed to think about the 24 hour common buying and selling value of LUNA to settle the guess. The token is at the moment buying and selling at $93.8, slightly below lifetime highs.
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 fingers.
LUNA rallies on excessive yield provided by Terra
The LUNA token has been on a tear, rallying as a lot as 50% over the previous month and coming near a report excessive of over $100. Shopping for into the token was pushed by demand for the comparatively excessive yields provided by deposits in Terra-based stablecoins.
Particularly, the Anchor Protocol (ANC), which is predicated on the Terra blockchain, presents a market-beating, practically 20% yield on UST deposits. LUNA can be utilized to stake on the platform, and will also be burnt to provide UST, at a ratio of $1 of LUNA for $1 of UST.
Latest market volatility attributable to the Russia-Ukraine battle has boosted demand for stablecoins, inflicting merchants to hunt UST publicity by LUNA. The Terra neighborhood has additionally been lively in supporting UST, not too long ago constructing a $1 billion Bitcoin reserve to take care of the near-20% yield provided by ANC.
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