The 2022 cryptocurrency crash, largely due to Terra, caused tens of billions in losses. Its indirect impact was even greater. The bankruptcy that poisoned the last two quarters of 2022 for crypto investors was a result of the negligence of Do Kwon and his associates.
Terra Empties the Vault
Terraform Labs and its co-founder Do Kwon, linked to a wallet identified by Arkham, recently moved $62 million in BTC. The company, which monitors and visualizes on-chain activities, announced that 1,075 BTC were sent to a different address. It is unknown if Do Kwon, who is awaiting extradition in Montenegro, is responsible for this move. Only $2 million worth of BTC remains in the wallet.
After the stablecoin collapse in 2022, the LUNA Coin price crashed with UST, sending Terra into a death spiral. Investors who saw sudden rises during the decline as opportunities suffered massive losses. Moreover, as the price dropped from double digits to figures with many zeros, the team did not hesitate to announce the rapid inflation of LUNA supply.
Do Kwon, who promised to create billions of dollars in BTC reserves to support the stablecoin, remains silent about the fate of the assets sent to the market-making company. The year 2022 was spent discussing these neglects and abuses.
After serving a four-month prison sentence, Do Kwon was released in Montenegro but has not yet been extradited to the USA or South Korea. The constantly overturned extradition decisions between local and high courts are extremely confusing.
LUNA Coin Analysis
The chart is not promising, and due to the upper management’s situation, LUNA Coin seems to be searching for new lows. If the $0.31 base is lost, we could see a new drop to $0.25. On the other hand, those expecting a recovery will find it hard to be confident without reclaiming $0.55.
If BTC starts a strong recovery, speculative attempts to reach $0.55 would not be surprising for LUNA Coin. However, the weakened investor risk appetite, BTC searching for new lows, and the current situation of Do Kwon and his team suggest this is unlikely in the short to medium term.
