Terra founder Do Kwon lately positioned a $1 million guess with a dealer on twitter that the worth of LUNA, the native token on the Terra blockchain, will keep above $88 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 complete quantity to the successful social gathering.
Kwon and Algod agreed to contemplate the 24 hour common buying and selling value of LUNA to settle the guess. The token is at present buying and selling at $93.8, slightly below lifetime highs.
Algod has repeatedly referred to as the blockchain a “ponzi scheme”, stating that the dollar-pegged Terra stablecoin (UST) won’t survive a pointy selloff within the LUNA ecosystem. Their problem comes as an extension of this stance.
Algod additionally obtained affords 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 file 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, affords a market-beating, almost 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.
Current market volatility brought on by the Russia-Ukraine battle has boosted demand for stablecoins, inflicting merchants to hunt UST publicity by way of LUNA. The Terra group has additionally been energetic in supporting UST, lately constructing a $1 billion Bitcoin reserve to keep up the near-20% yield supplied by ANC.
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