The crypto currency market continues to plummet in value, with the crypto economy dropping by 14% over the last 24 hours. LUNA (the native Terra blockchain token) has plunged to $0.0156 per unit in the midst of the market crash. Terra’s founder Do Kwon revealed a plan on Wednesday, but after some brief healing, Terra’s native tokens LUNA and UST continued to plummet. Many are now beginning to ask who supported this popular cryptocurrency project and which crypto firms were exposed to failing assets.
LUNA Token’s Value drops to a US Dollar, Do Kwon is still quiet, ex-TFL employees are out, and crypto entities have announced zero Terra Exposure
The Terra blockchain project and the team Terraform Labs have had an incredibly rough week, as the platform’s two tokens shuddered in value against the U.S. dollar during the last few days. The once stable terrausd (UST), coin fell to an unprecedented low of $0.298/unit on May 11, 2022.
LUNA reached a $0.0156 low the day after. LUNA was previously ranked in the top ten by market capitalization. Currently, UST has the 15th highest market value in the crypto economy.
Do Kwon, Terraform Labs’ founder, was silent once again after addressing the community on Wednesday. Kwon was silent, however many crypto-related entities came forward to state that they did not have any exposure to Terra-based products or UST. “One of our Private users asked me via DM about Crypto.com exposure to UST,” Kris Marszalek, the CEO of Crypto.com, tweeted. “It’s $0. UST was never listed on Crypto.com and we didn’t participate in Anchor yield farming.”
Despite Terra’s implosion, the Major League Baseball (MLB) team the Washington Nationals referred to Terra in a tweet. In mid-February, the Nationals partnered up with blockchain team and were supposed to take UST payments.
𝐂𝐫𝐲𝐩𝐭𝐨 𝟏𝟎𝟏
Questions? You have questions? We can help.@terra_money // #NATITUDE pic.twitter.com/heXTCew26B
— Washington Nationals (@Nationals) May 10, 2022
Several other people came forward throughout Wednesday’s day, including companies like Multicoin Capital, Dragonfly, Onjuno,And more. Some of the crypto firms’ exposure claims, however, were contested.
In addition to the exposure claims, Coindesk authors Sam Kessler and Danny Nelson reported on Do Kwon allegedly being involved with another failed stablecoin project called “Basic Cash.” According to the report, a former Terraform Labs (TFL) employee said Kwon was behind the project and an anonymous source said other “TFL employees were behind the project.”
Terraform Labs had a long list of big name backers
Many have discussed the backers of TFL as well as any other big names involved in the project. Laura Shin, a journalist talked about TFL’s backers on Twitter. TFL was able to raise millions of dollars from strategic investors, many from large-name companies.
TFL investors include Pantera Capital and Arrington XRP Capital as well as Kinetic Capital, Coinbase Ventures. Galaxy Digital, James Sowers. Skynet Capital. Lightspeed Ventures. Sumit Gupta. Nemil Dalal. True Ventures. Altonomy. Greylock Partners. Accel. Bain Capital. Sequoia Capital. Paxos.
I’m officially a Lunatic!!! Thank you! @stablekwonThank you to Smith Street Tattoos. pic.twitter.com/2wfc00loDs
— Mike Novogratz (@novogratz) January 5, 2022
Crunchbase data shows that TFL has been supported by 29 investors as of 2018. Galaxy Digital and the company’s founder Mike Novogratz were big believers in Terra. Even the founder of Galaxy Digital was a believer in Terra. LUNA-themed tattooThe past January. Galaxy led a round of funding worth $25 million with TFL Singapore in January.
“What’s great about Terra is they are one of the first sandbox experiments that’s getting outside the sandbox […],” Novogratz is quoted as saying in a Bloomberg story that is now only available via Archive.org. “We are always looking at those projects because they are the canaries in the coal mines of what else is going to happen,” Novogratz added. Galaxy founder, Novogratz has not tweeted in over a year.
Let us know your thoughts on the Terra project’s collapse and the backing investors who invested in TFL. Please comment below to let us know your thoughts on this topic.
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