- Some Terra supporters think it will soon overtake ETH in the DeFi finance sector.
- On Monday, the 14th, the debate reached epic proportions.
There has been a mixed response for the Terra ecosystem (LUNA) since the recent growth of the stablecoin algorithm connected to the UST dollar and the appreciation of LUNA, the ecosystem’s native token. Some Terra supporters think it will soon overtake Ethereum (ETH) in the DeFi (decentralized finance) industry, and Terra will become the dominant network. However, a different view is that investors’ funds are at risk because of the protocol’s economic structure, which critics liken to a financial pyramid scheme.
On Monday, the 14th, the debate reached epic proportions when a Twitter user known only as “Algod Sensei” went beyond the usual accusations of Terra being a financial pyramid scheme and proposed a bet to the Terra community: he stated that he would be willing to risk $1 million in the certainty that the price of LUNA would be lower a year from now than your current quote.
#Terra founder has accepted bets worth millions of dollars on $LUNA trading higher than US$88 in a year’s time.
A #crypto trader made a US$1 million wager against $LUNA , betting on the devaluation of the asset, which Kwon accepted.
— Tokenview (@tokenview2018) March 16, 2022
Do Kwon, Terraform Labs’ creator and the man in charge of the Terra ecosystem, responded almost immediately: he accepted the challenge and bet on the confidence that LUNA will rise in value over the following 12 months topping US$ 88 at the moment the trader placed the wager.
A financial pyramid scheme was described as the link between UST and Luna last month by sensei Algod. When 1 UST is traded for $1 in LUNA at any moment, the UST’s association with the dollar is maintained. Investors can benefit from the rebalancing of the stock market by purchasing UST on the open market and then exchanging it for one dollar on LUNA.