• Thu. Sep 28th, 2023


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LUNA’s million-dollar bet with Do Kown a year ago ended in a tragic loss.

Mar 15, 2023 #Do Kown, #LUNA

Despite the fact that the US dollar stablecoin UST and its sister coin LUNA of the public chain project Terra collapsed in May last year, plummeting to near zero within a few days, causing global investors to lose about $40 billion.

However, prior to the crash, LUNA was the focus of the entire market. The Anchor protocol in the Terra ecosystem offered a 20% annual interest rate for storing UST, continuously attracting users to deposit funds. At the time, the price of LUNA also repeatedly set new highs, reaching as high as $119 at one point.

LUNA’s “Ten Million Dollar” Gamble One Year Ago

Facing the booming market at the time, Terra founder Do Kwon also made a bold statement exactly one year ago today: “A year from now, the price of Luna will be even higher than it is today!”

At that time, Do Kwon also bet $10 million with renowned trader GCR on Twitter, that if one year later LUNA would be higher than $88 (the price of LUNA at that time), Do Kwon would receive the $10 million.On the other hand, if LUNA is below 88 US dollars after one year, GCR will receive 10 million US dollars and up to 20 million US dollars in bets will be held in escrow by prominent KOL Cobie as an intermediary.

Did 22 million in bets transfer to FTX?

As for the result, I believe everyone can find out long before March 14 that Do Kwon has suffered a miserable defeat in this gamble. Not only has LUNA collapsed and plummeted close to zero, but Do Kwon is now also the object of intense pursuit by Korean law enforcement agencies, and has become an internationally wanted fugitive on the run.

Another important point to mention is whether the total amount of $20 million in gambling winnings was paid as scheduled. According to Cobie,After the collapse of LUNA on April 4th last year, he transferred the $20 million gambling money and $200 million wagered against Do Kwon and another BitKOL Algod to FTX. (However, it cannot be confirmed whether the winner transferred the funds afterwards.)

At that time, Cobie also mentioned that in order to prevent LUNA from miraculously returning to $88, he specifically bought some LUNA for hedging purposes. Fortunately, LUNA did not experience any miracles, otherwise, in the situation where FTX was also entering bankruptcy restructuring, he would have really lost a lot.

“I had already delivered my betting funds “in advance” during the LUNA reset. At the same time, in order to prevent LUNA from miraculously returning to $88, I also bought some LUNA hedging, but since all my LUNAs are on FTX, I’ll be screwed if LUNA miraculously returns to $88 in three months.”

Therefore, what seemed like a year-long gamble was actually decided in less than six months, with GCR emerging as the winner and claiming a prize of ten million dollars.

Another winner, AIgod, also tweeted earlier saying: Although it is easy to judge after the fact that LUNA will collapse, this tells us that the crowd is usually wrong, which is a great lesson.