- Veteran Terra Classic blockchain developer Tobias “Zaradar” Andersen alleges price manipulation.
- LUNC price dropped 10% despite Binance burning $236,600 worth of $LUNC.
- The Arkham Intel Exchange approved a bounty hunt for Do Kwon’s wallet.
In an attempt to “reduce the number of pointless questions,” the OG Terra developer Tobias Andersen has brought severe allegations against the Terra chain’s protocol makers. The old-time developer went as far as to say that “The market is clearly rigged by a single actor.”
Additionally, he expressed hopelessness when another Terra community member pointed out that utility cases are usually what makes a successful blockchain project. “By this point why bother. It’s more profitable for us to just build a new chain,” Andersen uttered, discouraged by the unfortunate price movements.
Theory Aligns with Gary Gensler’s Complaint
Andersen’s bold statements align with the complaint filed by Gary Gensler and the U.S. Securities and Exchange Commission (SEC), which includes substantial allegations against TerraForm Labs and its founder, Do Kwon.
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Here’s how Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, described Terra’s algorithmic stablecoin Terra Classic USD (USTC): “It was simply a fraud propped up by a so-called algorithmic “stablecoin” – the price of which was controlled by the defendants, not any code.”
On top of that, two on-chain sleuths recently completed a bounty hunt for Do Kwon’s wallet and received 9519 $ARKM, which equals around $5,000. The Arkham Intel Exchange specializes in solving cybercrime by labeling confirmed crypto wallets. The cybersecurity company made a breakthrough that could answer critical questions about Terra Luna Classic’s (LUNC) price manipulation allegations.
CEO Change & New Projects on the Horizon
However, the alleged theory doesn’t explain Terra’s ecosystem token price movements when both co-founding members are in jail. Currently, Do Kwon and Han Chang-Joon are serving four months in Montenegro for document forgery. Meanwhile, TerraForm Labs just hired a new CEO – Chris Amani.
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The new boss recently tried to separate the company’s work from Do Kwon’s personal affairs on Twitter Spaces. Mentioning nine new projects in development, Chris Amani expressed support for the downtrodden founder. Amani wished Do Kwon to “come back and participate” as soon as Kwon “clears his name.”
On the Flipside
- The recent Binance burn and the progress in the USTC repeg talks by the USTC Quant team might have contributed to the 30% monthly gains for Terra’s malfunctioning stablecoin $USTC.
- Terra Classic community recently passed proposal #11645, “L1 Team To Build Wallet Infrastructure”, which revolves around building a fully decentralized wallet for the struggling community.
Why This Matters
Terra Classic investors are looking for closure on last year’s financial fiasco and a decentralized way to use the blockchain network.
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