Critics Blast Do Kwon, Saying Terra Could Have Saved LUNA By Burning 6.5T Coins With $1.3 Billion Reserves
Do Kwon And Terra Could Have Saved LUNA With The $1.3 Billion Reserve But They Did Everything Wrong.
The troubles facing Terra Luna and UST continue to spark heated debates and conversations within the crypto community. LUNA was once a great project that has now turned into dust.
Some are already pointing fingers at Terraform Labs and Do Kwon, claiming that the two entities, with Do Kwon being the company’s leader and de facto owner, had played a part in fleecing investors of billions of dollars that were turned into pennies when Luna and UST crashed.
A Reddit post has now surfaced, with the Critic detailing what they think could have been the ultimate steps taken that could have saved LUNA and UST from the current predicament.
Apparently, the Luna Foundation Guard (LFG) held around $1.3 billion in reserves meant to keep the Luna and UST market stable. At prices estimated at $0.0002, this fund could have bought roughly 6.5 Trillion Luna to be burned and possibly sparked a price upswing to reverse the damage.
“Victims Of Their Own Stupidity”
However, according to the poster, Do Kwon and his team didn’t do that. Instead, they resolved to buy UST at high costs, and this didn’t work. Eventually, UST had to be de-pegged from the USD as it capitulated to very low-price levels. In essence, it seems that Terra just threw $1.3 billion away with no notable effects on what it was meant to accomplish. In this case, the Terra team deployed the LFG incorrectly, and that amounts to incompetence.
The Reddit post read:
“…So if they had not deployed their reserve stupidly buying UST at high prices (as they claim), they could have EASILY recovered the project by deploying their reserves by buying the excess LUNA now. Over time, they could have replenished their reserve.
They are victims of their own stupidity and incompetence for not deploying the LFG reserve correctly. They bought the wrong token at the wrong time.”
Did They Steal The LFG Reserves?
A section of the crypto community has been up in arms accusing Do Kwon and Terraform Labs of stealing the LFG funds. Another Reddit post by different poster details the money flow of funds, especially the reserve BTC held in the LFG during the crash.
It Could Have Been A Bad Idea
Still, there are those that feel that using the LFG to buy off LUNA and burn it would have been a bad idea and wouldn’t have solved the problem. However, the current state of affairs indicates that the Terra community wants an amount of LUNA tokens to be burned out of the ecosystem, suggesting that it could work to shore up the price. Whether Do Kwon and his Terra team will adopt this proposal is still a subject of speculation.
Back to the list