Terraform Labs founder Do Kwon accepted a $1 million bet on Terra’s (LUNA) odds with user Sensei Algod by transferring money to Twitter user Cobie’s escrow account.
According to the bet details, Sensei Algod will win if LUNA’s price falls below $88 in the next year, while Kwon will win if LUNA’s price is higher.
Both parties agree to use time-weighted average price (TWAP) for the LUNA price on Coingecko on March 14, 2023. TWAP refers to the average price of an asset within a specified period.
Cobie volunteered to build atliveUnder his control as a money guard, data from Etherscan shows that both sides have deposited $1 million in tether (USDT).
Sensei Algod has always been a critic of Terra’s ecosystems before. Based on the LUNA dependency to maintain the TerraUSD (UST) peg, which uses LUNA token burning to generate each UST coin.
And the moment when demand for UST increased for the DeFi protocol led to the burning of a lot of LUNA, which critic Sensei Algod said would eventually lead to significant price reductions for LUNA, as LUNA was tied to UST and if LUNA’s price drop could cause UST to permanently lose its peg.
However, the Luna Foundation Guard recently raised $1 billion. To create bitcoin reserves for UST, which would make it less reliant on LUNA.
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