Many anonymous sources have connected with Terra community member “FatMan” and exposed facts about Terraform Labs co-founder Do Kwon’s monthly payments to quantitative trading firm Jump Crypto, as well as their participation in the UST meltdown. Terra’s LUNA pricing has not recovered as a result of Proposal 1299
Terra Researchers Express Outrage Against Do Kwon
TerraUSD (UST), an algorithmic stablecoin, experienced a massive drop a week ago, where the token lost its $1 peg, as well as Terraform Labs’ LUNA and UST tokens lost a total market value of $39, 1 billion dollars in a week.
This episode has been dubbed as the “first crypto bank run” in history, and it had a devastating effect on Terra’s LUNA price, which fell from about $100 to below $0.0002 in only a few weeks
Now, Terra Research forum user “FatMan” has the information about Terra co-founder Do Kwon and the Jump Crypto deal, which he shared on Twitter via @FatManTerra.
Do Kwon, according to the research, repays Jump Crypto with an agreed monthly LUNA amount. More information about these transactions are yet to be released by @FatManTerra.
Jump Crypto allegedly tricked retail investors into losing billions on LUNA and UST, according to a member of the Agora Terra forum. Community members have yet to produce proof of the transactions that link Jump Crypto to the collapse of the UST.
Terra Labs Suggestion Implementation Gets Delayed
Terraform Labs proposed suggestion 1299 in order to free the UST locked on side chains. Terra validators stopped Inter Blockchain Communication (IBC) as a stop gap measure during the massive meltdown. The request was approved, however owing to technical difficulties, it was not implemented today.
Osmosis alone accounts for 154.7 million LUNA and UST in all side chains. The “Revival Plan,” which compensates holders for losses in the recent attack, does not cover Terraform Labs tokens that are locked to sidechains.
This collapse led to the UST and LUNA tokens that are stranded on side chains being missed out from the launch snapshot, causing community members to lose money.
The success of Terra’s LUNA price turnaround depends on the execution of bailout Proposition 1299.
LUNA Burn Not A Best Idea
The Terra community has condemned Do Kwon for his decision to exclude the algorithmic stablecoin UST from the final Terra ecosystem recovery approach.
On Twitter, members of the community informed Kwon that they could help Terra’s recovery by burning LUNA. Do Kwon responded by informing the Terra community and its one million Twitter followers that LUNA sent to burn addresses was lost and that burning those tokens was not a good idea.
The community has opposed Kwon’s concept for Terra’s revival, Terra Ecosystem Plan 2. Over 52.6 million people did not vote on Proposition 1623, while 35.2 million voted “No with Veto.”
This brings the total number of downvotes to 87.8 million, representing almost 33% of the community’s dissatisfaction with Terra’s LUNA Prize reclaim proposal.
