Terra founder Do Kwon just lately positioned a $1 million wager 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 wager 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 think about the 24 hour common buying and selling value of LUNA to settle the wager. The token is at present buying and selling at $93.8, just under lifetime highs.
Algod has repeatedly referred to 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 gives from different merchants for his or her problem, though it was not instantly clear whether or not cash had modified arms.
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 file 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 relies on the Terra blockchain, gives a market-beating, almost 20% yield on UST deposits. LUNA can be utilized to stake on the platform, and can be burnt to supply 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 by way of 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 provided by ANC.
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