LUNA plummeted 45%, is there no hope? Do Kwon is still lying now, he holds more than 42 million new LUNA and tries to manipulate governance! Developer: I expected a crash but he didn't listen!

On June 6, Terra researcher FatMan tweeted to criticize TFL for saying that it would not receive new LUNA airdrops and return the new chain to the community. However, his investigation found that TFL and Do Kwon's shadow wallets had a total of 42 million LUNA, with a total value of more than 200 million US dollars, and attempted to manipulate governance. On June 8, Terra founder Do Kwon suddenly set a "privacy filter" on his Twitter account yesterday, allowing only authorized followers to view his tweets. This caused panic in the community, and LUNA plummeted by nearly 45%. A core developer of Anchor also said: He had been asked to lower the interest rate, but Kwon did not listen.

NO.1 Do Kwon is still lying now. He holds a large amount of new LUNA and tries to manipulate governance!

FatMan, a researcher at the public chain Terra, published an article on the evening of the 6th, criticizing Do Kwon for blatant lies. He quoted Terra’s article on May 25, saying that Terraform Labs (TFL) had openly stated that they would remove LFG, the community pool and their own wallet addresses from the airdrop whitelist, making Terra a chain completely owned by the community.

But after FatMan's investigation, he said he found that this was a " complete lie ". In fact, TFL and Do Kwon own a total of 42.8 million LUNA (currently priced at about US$4.36), with a total value of more than US$200 million, and they continue to lie.

FatMan disclosed five shadow wallet addresses associated with TFL and Do Kwon and said:

Do Kwon used his shadow wallet to approve his own proposal via governance manipulation (TFL was not supposed to vote) and then told everyone that this would be a community owned chain.

These are just the verified wallets, there are many others.

FatMan reminded retail investors to do their best, receive symmetrical information and act with caution, and criticized Terra for having no moral bottom line and lying for money at every possible turning point. Finally, FatMan also mentioned that they will continue to explore TFL's dark history in the next few months, and said that there are several important and brave witnesses ready to testify in court for related court cases.

In fact, just last week, FatMan also revealed that the core team of the most popular Anchor protocol on Terra had left TFL long before Anchor was listed because Do Kwon insisted on implementing UST's 20% annualized interest rate (APY) subsidy, even though the team had mentioned that this might lead to a collapse.

NO.2 LUNA plummeted 45%! Do Kwon set Twitter to "private" Anchor developer: I expected it to collapse but he didn't listen

On June 8, Do Kwon suddenly turned on the "privacy filter" on his personal Twitter account after being silent for many days, allowing only authorized followers to view his tweets. A few hours later, some netizens discovered that he seemed to have changed the settings again, opening it to old followers who had already followed him, but locking it to new followers.

For someone who often uses Twitter to update real-time information, Do Kwon's move is unusual, but he has not yet explained the reason before press time. Netizens speculated that he may have been harassed a lot in the past few weeks, or he wanted to avoid reading negative tweets and replies.

Do Kwon's sudden move may have caused panic among investors. LUNA, which had been falling slowly for several consecutive days, plummeted rapidly from $3.53 at midnight on the 9th. It once fell to $1.95 at around 7:30 earlier, a drop of nearly 45%. It rose slightly before press time and is now trading at $2.2.

On the other hand, Terraform Labs is still facing multiple legal investigations, and some people predict that Kwon may face jail time. According to a report by South Korean media JTBC on the 7th, they interviewed the developer who designed the most popular protocol on Terra, Anchor Protocol, and he said:

The initial interest rate was designed to be 3.6%...but a week before Terra went online, Do Kwon raised the interest rate paid to investors to 20%.

The developer said that he had suggested to Do Kwon several times to lower the interest rate because they expected that if the market conditions deteriorated, it might lead to a rapid collapse, but it was not accepted. Do Kwon said that " high interest rates can attract investors ." It is reported that JTBC reporters have asked Do Kwon about this matter several times, but have not received a response.

Paolo Ardoino, CTO of Tether, the operator behind the leading stablecoin USDT, also said in his first visit recently: LUNA is the highest collateral of UST. Once LUNA collapses, UST will inevitably decouple from the US dollar. Ardoino pointed out:

If stablecoins want to avoid the fate of Terra, they need to have sufficient reserves, just like Tether (USDT). To maintain the peg to the US dollar, there should be a portfolio of assets including US Treasury bonds, cash bank deposits and commercial paper.