Terra (LUNA2) reversed part of the loss on June 9, as its token price rose by up to 67.5% on the day and hit many traders hard with their perpetual swaps.
LUNA2 traders are shortening it
In detail, The price of LUNA2 rose from 2 dollars to up to 3.58 dollars. The volatile movement within the day coincided with the winding up of nearly $ 4 million LUNA2 trading on Binance and Bybit, including a $ 2.46 million shortfall, according to data from Coinglass.
Interestingly, LUNA2’s funding ratio over Binance and Bybit remained negative, indicating that traders are still short despite price increases.
The performance of the LUNA2 market has strengthened largely due to its underperformance in recent weeks, due to its relationship with Terra, a stablecoin algorithm project where the LUNA Classic (LUNAC; formerly known as LUNA) and TerraUSD (UST) symbols crashed in May.
Terraform Labs (TFL), the company behind the Terra blockchain, founded LUNA2 from the ashes of the $ 40 billion project. It spread the improved symbol among investors who had suffered losses from LUNC and its UST investments through the drop of air.
Apparently, these LUNA2 recipients decided to drop the token to recoup some of their losses, pushing the price down 85% within two weeks of hitting $ 12.24.
Investors are also likely to distance themselves from LUNA2 amid allegations that Do Kwon, founder / CEO of TFL, lied about having zero LUNAC tokens. Interestingly, the self-appointed Terra insider, known by the pseudonym “FatMan”, claims that TFL and Kwon have 42 million LUNA worth over 200 million dollars.
Do Kwon has repeatedly stated that TFL has zero new LUNA symbols, making Terra 2 a “community owned”. This is a complete lie that no one seems to be talking about. In fact, TFL owns 42M LUNA, valued at over $ 200 million, and they are lying through their teeth. (1/6) image.twitter.com/D1HIWpAWHG
– FatMan (@FatManTerra) June 6, 2022
The user also unveiled five “shadow wallets” containing 42.81 million LUNA2 (worth over $ 110 million at a price on June 9), stating that they all belong to Kwon.
“[Do Kwon] used his shadow wallet to approve * his own proposal * using management methods (TFL should not vote), told everyone that this would be a chain owned by the community and then gave himself a nine-digit rating, “Fatman meansadds:
“These are just confirmed wallets – there are many others.
TFL, Kwon under investigation
LUNA2 is struggling due to growing scrutiny around TFL, especially after the South Korean tax authorities spent $ 78 million on it in May.
Related: Anchor dev claims he warned Do Kwon against unsustainable 20% interest
What’s more, prosecutors and police in South Korea have launched an investigation following allegations that a TFL employee cheated an unspecified amount of Bitcoin (BTC) from the company.
In addition, the US Securities and Exchange Commission (SEC) is also investigating whether TFL’s cryptocurrencies are illegal unlisted securities.
hands down the biggest hell prize of the year gets @stablekwon.
– NFTeddy (@TeddyCleps) June 9, 2022
As a result, LUNA2 prices are likely to fall in June, with ongoing problems for TFL, legal pressure and a generally bearish attitude.
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