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Crypto Whale Who Won Bet Terra's Collapse Reveals Massive Short Against Terra Classic ($LUNC)

Altcoins

www.cryptoglobe.com 15 September 2022 01:20, UTC
  
Reading time: ~2 m

A popular cryptocurrency whale known as Gigantic Rebirth on the microblogging platform Twitter has revealed a massive bet of around $8 million against Terra Classic ($LUNC). Terra Classic is the rebranded version of the original Terra ecosystem, which collapsed earlier this year.

Gigantic Rebirth, known as GCR on Twitter, announced the position against the cryptocurrency in a tweet referring to a now infamous tweet from Terra’s founder Do Kwon, who had said “by my hand $DAI will die.” DAI is an Ethereum-based decentralized stablecoin collateralized by other cryptocurrencies.

By my hand $LUNA1.0 will die.

[again] pic.twitter.com/YsuDDBzqpf

— GCR (@GCRClassic) September 9, 2022

The announcement referenced a second time GCR has done this, as the trader is well-known in the cryptocurrency community for shorting Terra before the collapse, at the time making a bet with Do Kwon himself that the price of its $LUNA token would drop below the $92 line within a year. At stake were $10 million.

The Terra ecosystem later collapsed and the cryptocurrency’s original blockchain was rebranded to Terra Classic, while a forked version of it kept the Terra name and moved on with a part of the community.

A second tweet from Gigantic Rebirth, later on, revealed that they entered the trade at an average price of $0.00048 per LUNC token, with a total position size of 21.98 billion tokens. At the time of writing, LUNC is trading at $0.0003 after falling along with the rest of the cryptocurrency market after higher-than-expected inflation data in the U.S. was announced.

Pair trading was an abandoned art discarded in the indiscriminate bull market
When you long strength against collapse, you win on both sides https://t.co/Am2Lozozms pic.twitter.com/zQiOm4Git5

— GCR (@GiganticRebirth) September 12, 2022

The cryptocurrency’s price surged earlier this month after cryptocurrency exchanges KuCoin and others announced support for the 1.2% tax burn proposal of the Terra Classic ($LUNC) community if “the proposal is officially approved and implemented” on the Terra Classic mainnet.

The surge triggered by centralized exchanges’ support of the cryptocurrency led to a significant rally that fueled speculation that suggested $LUNC could trade at $0.1 or even $1 per token. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, which means that to reach $1 its market capitalization would top that of the entire cryptocurrency space at the time of writing.

Terra Classic’s community is looking to burn 1.2% of all transactions conducted on the network in a bid to reduce the cryptocurrency’s circulating supply. Some exchanges, like Binance, announced they would not implement the proposed 1.2% tax.

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