IT’S OVER: Do Kwon to RESET the Terra Luna Blockchain | Cryptocurrency News

IT’S OVER: Do Kwon to RESET the Terra Luna Blockchain | Cryptocurrency News

The Terra Luna cryptocurrency is dead. It was once trading at over a hundred dollars just a few weeks ago. It is now down to fractions of fractions of a penny. I want to give you an update on what to expect next. Do Kwon’s proposal to reset the Terra Luna blockchain, a fresh look into the billions of dollars of Bitcoin that Terra Luna held, what happened to the bitcoin, as well as a few pieces of altcoin news that you should know as an investor.

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How Terra Luna Died?

Let’s jump in by first analyzing how Terra Luna’s price got here. Many people see this and think “Wow, the price crashed. Everybody must have sold.” That’s why the price crashed and that’s only a little bit true because in reality price equals supply and demand. So yes, demand did go down, that was some people selling, but the majority of this was actually supply increasing.

As per the latest data from the block research Luna’s circulating supply did a 19,000x in four days. This is hyperinflation. Hyperinflated coins are worth less. Here is a chart of luminous circulating supply as of yesterday. As you can see, trillions and trillions of coins were printed.

Now why did Do Kwon and the Terra Luna Foundation do this? Well, they printed more to sell on the open market in an attempt to prop up their stablecoin UST. As we know, they have failed thus far and are currently sitting at 15 cents on the dollar. Anyway, back to Luna. I shared this with you because so many people I saw on twitter were buying the dip, buying thousands if not hundreds of thousands of Luna because I thought, wow, if it just gets back to a dollar, if it just goes back to a hundred dollars, I’ll be a billionaire. If you have heard that from other hype channels, they’re lying to you.

The supply was inflated and the price will never go back to what it once was, let alone even a dollar:

It’s not happening, at least not happening this decade, unless of course they take back that supply and reset the blockchain.

Do Kwon to Reset Terra Luna Blockchain

That’s exactly what Do Kwan, in part, has proposed to do. Do Kwon resurfaces to propose a clean slate for Terra, this time without the UST stablecoin. This was proposed just two days ago. Do Kwon called this his ecosystem revival plan, and in it he suggested that UST is not coming back and that the Terra blockchain must redistribute tokens to move forward. In a direct quote from his statement, he says the ecosystem needs to redistribute the tokens. He says,

‘The holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes. While a decentralized economy does need decentralized money, UST has lost too much trust in its users to play the role.’

I agree. Even if the peg was restored to a dollar, I don’t see people putting their money in UST. Instead of building back with UST, Kwon proposes revitalizing the network around the Terra Blockchain network:

‘We’ve built up one of the largest and most vibrant developer ecosystems in crypto with some of the smartest minds in the world working on products with the best UI/UX.’

Tara Luna does have a growing, dare I say thriving, DeFying ecosystem that DApps are being built on now. Of course, if Do Kwon wants to redistribute the tokens, the devil is in the details. How exactly does he plan to do it well?

As I said at the beginning, there are over 6.5 trillion tokens for Terra Luna:

That means it would not count if you bought the dip. If you bought it for pennies on the dollar, 40% would simply return to the original holders before the collapse.

As you know, the LUNA blockchain was halted twice on Friday, and then the final 10 percent would just go into a community pool to further the growth of the new Terra Luna 2 blockchain. So that is the proposal on the table again. It’s up to the community if this goes through, if this is tweaked in any way, or if this is voted on.

Do Kwon is ‘Heartbroken’

Do Kwon did take to Twitter. This is the last message. He put out a few days ago saying that he was heartbroken over Terra’s demise. Here was that exact tweet:

Did Do Kwon cash out in time or did he lose his money? 

We are currently working on documenting the use of the Luna Foundation Guards BTC reserve during the depending event. Please be patient with us as our teams are juggling multiple tasks at the same time.’ Do Kwon is going to put out a post-mortem report on exactly what happened.

What Happened to Terra’s $3.5B Bitcoin Reserve?

That does bring us to our next obvious question: what happened to the 3.5 billion dollars in bitcoin that were sitting in Terra’s reserves? They bought that bitcoin for a reason and nobody knows what exactly happened to those reserves and where they are now. We are waiting on that postmortem from Do Kwon, but they did have over 80 000 bitcoin in the reserves worth billions of dollars.

Now analyst firms have done a little analysis and tried to pinpoint where exactly those bitcoins went. For example, Do Kwon told us three or four days ago that a loan of 750 million dollars worth of BTC was going to OTC trading desks to help protect the peg, so out of that 80 000 BTC, that does represent around 22 000 BTC worth that amount of money at the time. That’s about 25% of their reserves.

Later that evening, a further 30 000 BTC worth almost a billion dollars at the time was sent from other LFG wallets to the same address. We assume OTC trading desks Then, within hours, the entirety of this 52 000+ BTC was moved to a single account at us crypto exchange Gemini via several bitcoin transactions. Again, this was days ago.

The reason they had all this bitcoin: the purpose of having a very large reserve of bitcoin was potentially to purchase UTS their stablecoin to push the price back up to one dollar, which is probably the reason it was sent to exchanges. However, it’s not possible using the blockchain alone to identify whether it was sold to support the UTS price. While all that bitcoin was sent to exchanges, we do not know whether all of it, some of it, how much of it was sold, or how much of it Terra Luna still has left.

Flow Ecosystem Gets HUGE BOOST

Moving forward, let’s talk about the flow. Top Shot creator, an altcoin, has announced a 725 million dollar fund to support the ecosystem. The new ecosystem fund for Flow will be used to support the 7500 developers on Flow to build new gaming infrastructure, DeFi content, and content creator products on the NFT blockchain. This is major support for the flow ecosystem. In fact, this new fund was backed by 17 firms that have experience backing other successful web 3 companies, including the large investment firms like a16z, Spartan Group, and Coin Fund. So now that these companies have invested, what specifically will these hundreds of millions of dollars be used for? What will the funds be used for? The funds will be used to attract developers to bring their work onto flow instead of competitor Ethereum, which still dominates NTs despite high gas fees. Within the Flow ecosystem itself, the funds will provide support for gaming infrastructure, defy content, and creators This is Flow’s push to outcompete Ethereum, outcompete Cardano, Solana, etc. and they got major funding to do it.

Low Cap Altcoin News (Symbiosis and Stepn)

The next piece of news for Symbiosis Finance is the huge integration with 1INCH.

So just as a reminder, symbiosis is a multi-chain liquidity protocol offering major interoperability for DeFi, or anything that needs liquidity and needs to jump from one chain to another.

Today they’ve announced that they’ve partnered and integrated with 1INCH to enable the best price discovery for cross-chain swaps. So anyway, love to see the progress.

Next piece of news for altcoin step in STEPN’s move to earn model has crypto analysts seeing a long term value and just for some background, this step to earn app on the Solana blockchain has users get crypto rewards back just from walking or just from jogging. The news today is that the fitness app has grown to more than 300,000 daily active users in just a few months. So anyway, cool to see fitness and crypto move to earn kind of becoming super popular and cool to see the user growth for STEPN.

[This article is a transcription of a video made by Altcoin Daily]

Original video: https://youtu.be/40aOnXc2mPU ]