A controversial document released on Sunday reveals that Do Kwon dissolved Terraform Labs just a few days before the collapse of LUNA and UST. The document was dated April 30th, 2022, and was written in Korean.
The document has been spread through various social media channels, as accusations of a rug pull mount on Terra’s founder. At the moment, many Luna investors and spectators believe that Do Kwon dissolved the company in advance to avoid being held responsible for the disastrous events that followed in Luna’s ecosystem.
Another report revealed that Terra foundation sent over 52,000 BTC to the Gemini exchange and 28,000 BTC to the Binance exchange to support the rumors flying around. The amount of Bitcoin sent was meant to back Terra’s reserves, but transferring such a huge amount to centralized exchanges will only add more suspicion to the unanswered questions we already have.
The team’s actions are now viewed as a premeditated crime to siphon $2 billion worth of BTC rather than an accidental crash that resulted from an extremely volatile market.
What is Next for LUNA? Revival or Total Damnation?
In the meantime, Do Kwon has yet to answer any of the accusations stated above, but the Terra protocol keeps losing investors’ trust every second.
Last week, Do Kwon shared his plans to reinvigorate the project. He apologized to all in the ecosystem, admitting that the mint and burn mechanism on which UST relied was a wrong choice. Kwon also stated that early investors would be reimbursed with millions of LUNA tokens, and the minting of new LUNA would be halted.
While the escape plan seemed logical, it would be unable to revert all the damage done to the protocol. In the months to come, and perhaps in years to come, Luna will be remembered for one thing – Its gigantic fall from the “moon”!
