The saying “never catch a falling knife” is commonly used in financial markets. However, when cryptocurrency investors hear it, they often recall the collapse of LUNA and UST. This catastrophic event of 2022 was triggered by a South Korean con man, leading investors to incur tens of billions in losses. The LUNA collapse set off a chain of significant negative events, including the infamous FTX crash.
The Terra Trial
Do Kwon, who inflicted over $40 billion in direct and far more indirect losses on the market, is still under prosecution. The extradition process has been a confusing saga, with both approval and cancellation multiple times. Recently, Montenegro was accused of inefficiency as finally the back-and-forth decisions of the courts came to a close, and the extradition was approved. These were intriguing days.
Tomorrow marks a pivotal court date with rumors suggesting that Do Kwon will amend his defense. As Terraform Labs’ co-founder, he faces charges of fraud and money laundering by U.S. prosecutors. Even though he denies the allegations, he may have no choice but to concede to them.
In the schedule decision filed in the United States District Court for the Southern District of New York, it is mentioned that Judge Paul Engelmayer has been informed.
“The court has been informed that the defendant may change his plea.”
Despite pleading not guilty in January, the criminal prosecution began in March 2023. It is expected that in tomorrow’s hearing, Kwon will admit guilt and face the consequences.
LUNA and LUNC
These are nothing more than speculative altcoins. I’m referring to LUNA and LUNC, and since the 2022 collapse, repeating this has been tiresome. Although investors suffering heavy losses appear hopeful, they, too, have lost hope over the years. LUNA had a speculative surge to $0.8 post-U.S. elections, only to plummet swiftly. It has seen no significant upward attempts in 250 days and needs about a 372% rise to return to its price at the end of last year.
For almost 500 days, it has been under $1, seemingly destined to sink further. Strong competition exists, the team behind LUNA has vanished, funds are lacking, the network is dysfunctional, and this has been clear for years. Speculative movements might occur again but will only be like a flash in the pan.
LUNC’s situation is no different. Claims of supply contraction due to burning were debunked using 100-year projections. The charts for the two are nearly identical. While Terra Rebels initially offered hope, LUNC ultimately fell short. In a competitive environment, it’s understood that these speculative tokens and crypto infrastructure protocols are outnumbered by numerous alternatives, leading to the easy acceptance of their continued decline. Yet, cryptocurrencies are full of surprises, and any investment decisions are your responsibility for both positive and negative outcomes.
