The Bitcoin and Ethereum price continues to face bearish pressure as the global cryptocurrency market shows a 4.55% decline in the past 24 hours. The BTC price is down over 4%, currently trading at $27.6k, and ETH is down 6.87%, currently trading at $1.4k. Surprisingly, Terra 2.0 (LUNA) price managed to gain 4% today as Do Kwon took to Twitter to refute rumors of him cashing out over $2 billion worth of Terra Luna coins via anonymous wallets.
Global Markets Dive as Inflation Soars
The cryptocurrency market selloff extends through this Sunday as rising inflation threatens global and crypto markets. Investors remain cautious as prices are on the rise, and many decide to sell their investments to hold cash on deck.
The stock market saw significant price drops on Friday, and since crypto markets trade 24/7, this weekend has been nothing short of a bloodbath for most digital assets.
Analysts agree that we haven’t hit bottom yet, as market conditions remain stark. In addition, major brands in the blockchain space like Coinbase, among other crypto and tech companies, announced significant layoffs.
Do Kwon Refutes Allegations of Selling Billions of LUNA
With these uncertain times, Twitter is rampant with conspiracy theories and rumors. Specifically, @FatManTerra, one quite vocal Terra community member, accused Do Kwon of cashing out over $2.7 billion worth of LUNA over mere months.
🧵 Some of you thought $80m per month was bad. That's nothing. Here's how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA & UST system and into hard money like USDT. (1/13)
— FatMan (@FatManTerra) June 11, 2022
Fat Man claimed that Do Kwon cashed out his tokens via Abracadabra’s Degenbox, a borrowing protocol enabling users to loop stablecoin buys. FatMan explained how users could stake collateral to buy UST, put it into Anchor, then use your aUST to borrow more UST. This loop supposedly enabled Do Kwon to cash out billions in months.
In response to the above allegations, Do Kwon responded in a series of Tweets stating that “the claim that I cashed out $2.7B from anything is categorically false.”
Do Kwon went on to clarify:
“For the last two years the only thing I’ve earned is a nominal cash salary from TFL, and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger-pointing of he has too much.”
5/ Please say things that are proven and true – if you are spreading falsehood that just adds to the pain of everyone who has lost. Thank you.
— Do Kwon 🌕 (@stablekwon) June 12, 2022
Terra 2.0 (LUNA) Price
It seems the Terra Luna community appreciated Do Kwon addressing these accusations as the LUNA price managed to show a 4% gain this Sunday. At the same time, most other digital assets continued to dive.
Terra 2.0 (LUNA) is currently holding a $567 million valuation with $232 million in trading volume, rising by 7% in the past 24 hours.
Terra Classic (LUNC) also saw a 2% price growth today, hovering at the $462 million market capitalization with a 24-hour trading volume of $150 million.
While the past 24 hours, both cryptocurrencies managed to trade sideways, the past week has been brutal for LUNA and LUNC as they lost over 50% in value. We can only hope that stock markets rebound next week, which would provide BTC and ETH with a chance of recovery, and subsequently, LUNA and LUNC could attempt to bolster bullish momentum.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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