After climbing to $11.33 per unit seven days ago on May 30, Terra’s new LUNA 2.0 token has lost more than 56% in value against the U.S. dollar. Amid the market performance, a number of former Terra-based decentralized finance (defi) projects are transitioning over to the new Phoenix-1 blockchain. In addition to the defi projects re-joining the Terra ecosystem, the whistleblower known as Fatman continues to accuse Terraform Labs (TFL) and Do Kwon of manipulative tactics such as allegedly lying about making LUNA 2.0 community-owned. Fatman alleges Kwon and TFL have access to shadow wallets with 42 million new LUNA tokens.
LUNA 2.0 Token Loses 56% Since Last Week’s High Price, Terra Defi Apps Join New Phoenix Blockchain
Last week, the price of Terra’s LUNA 2.0 token was in a better ranking, with the value climbing to $11.33 per unit last Monday. Since then, however, LUNA has fallen 56.92% since the peak on May 30, 2022. Today’s 24-hour price range statistics indicate that LUNA has ranged between $4.84 and $5.46 by piece.
Out of more than 13,400+ cryptocurrencies in existence today, LUNA’s market capitalization is ranked 2,806 and it has seen $380 million in global trade volume during the last 24 hours. The top five trading pairs with LUNA on June 6, 2022, includes USDT, USD, EUR, USDC, and ETH respectively.
Amid market performance over the past week, a number of challenge applications which were once very important applications on Terra are preparing to join or have already joined the new 2.0 system. This includes Terra defi applications such as Valkerie Protocol, Leap Walletand Astroport.
The Terra Twitter page recently explained that the Terra Bridge Version 2 is now live and with the latest version, “users can transfer assets to [and] from Terra 2.0, Ethereum, Osmosis, Secret, Cosmos, [and] Juno.” The Terraform Labs co-founder Do Kwon tweeted about the decentralized exchange (dex) Phoenix and the staking derivative application Stader launching on Terra 2.0.
Terra Whistleblower accuses Do Kwon and Terraform Labs of owning ghost wallets
As Terra Community Members Rebuild the Wiped Out Blockchain Ecosystem, Whistleblower Fat man continues to accuse Terraform Labs and Do Kwon of manipulation. On June 6, Fatman said that Terraform Labs and Do Kwon would have shadow wallets, although the team promised that specific wallets like the Luna Foundation Guard and TFL wallet would be blacklisted from the LUNA 2.0 airdrop.
“Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making Terra 2 ‘community-owned,’” Fatman tweeted. “This is an outright lie that nobody seems to be talking about. In fact, TFL owns 42M LUNA, worth over $200m, and they’re lying through their teeth.”
Fatman also leaked five wallets he suspects to be shadow wallets including 1, 2, 3, 4, and 5 Terra-based addresses. The five wallets contain 42.81 million LUNA 2.0 tokens and Fatman claims that there are many other wallets. Three of the five wallets moved LUNA while the other two remained inactive.
“[Do Kwon] used his shadow wallet to approve *his own proposal* through governance manipulation (TFL is not supposed to vote), told everyone it would be a community-owned chain, and then gave himself a nine-figure score. These are just the verified wallets – there are many others,” the whistleblower wrote.
However, in another Twitter thread, Fatman explained that there is a possibility of Terra 2.0 becoming a community-owned blockchain. But Fatman wholeheartedly believes that Terraform Labs (TFL) is not letting this concept come to fruition.
“Terra 2 may succeed as a truly community-owned chain, but it appears TFL is hell-bent on making sure this doesn’t happen,” Fatman said. “I hope things change, but multiple builders are reporting that the chat is in complete disarray and there is a lot of pent-up resentment towards [Do Kwon].”
