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Whale Who Bet Do Kwon $10M That Luna Would Fail Is at It Again

Altcoins

cryptobriefing.com 12 September 2022 23:09, UTC
  
Reading time: ~2 m

Luna Classic has surged more than 33,565% from its bottom in May. The token’s parabolic run is now being met with selling pressure from crypto whale Gigantic Rebirth, who had already famously shorted the Terra ecosystem before its collapse.

Old Nemesis

A crypto whale is betting against Luna Classic’s revival.

The trader, who goes by the name Gigantic Rebirth on Twitter, indicated on September 9 that he was shorting LUNC. The token price was roughly $0.00042 at the time; it is currently trading at $0.00033.

This is the second time Gigantic Rebirth has bet against the coin. On March 14, he famously made a $10 million wager against Terra founder Do Kwon that the price of LUNA (the token name at the time) would drop below $92.4 within a year’s time. The collapse of the entire Terra ecosystem followed almost two months later.

Gigantic Rebirth referenced a viral Do Kwon boast when he announced his new short: “By my hand [LUNC] will die. Again.” Attached was a screenshot showing a short position the size of 21,988,427,000 LUNC tokens (worth about $9,235,100 on September 9). A later tweet revealed the position was opened for an average price of $0.00048 per LUNC token.

Because of the way Terra’s algorithmic stablecoin UST was designed, Luna Classic suffered from hyperinflation when the entire ecosystem imploded in early May. According to Statista, the coin’s circulating supply jumped from 345 million tokens to 6.9 trillion, which cratered its price. LUNC bottomed at $0.000000999967 on May 13; however, the coin’s price has surged by more than 33,565% since then, fueling speculation that it could possibly reach $0.01 or even $1. 

Attaining such prices would mean Luna Classic’s market capitalization (currently at $2.3 billion) overtaking Bitcoin’s and reaching trillions of dollars. The highly unlikely scenario rests on the tenuous plan put forward by members of the Terra community to install a 1.2% burn fee on all transactions operated on the Terra blockchain. However, most LUNC transactions now occur on centralized exchanges such as Binance, KuCoin, and Gate.io. Binance has already announced that it would not implement the community’s proposed 1.2% tax.

When asked for his price prediction for LUNC, Gigantic Rebirth retweeted a post from former U.S. presidential candidate Hillary Clinton, which said: “That’s right: ZERO.”


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