Do Kwon, the now-famous Terra CEO and founder, published on Twitter on May 21 a dead wallet address where people may send their LUNA tokens to be burned. The uploaded wallet was filled with nearly 280 million LUNA tokens, making the tweet one of Do Kwon’s most popular.
With 2,719 transactions, the total amount of LUNA transferred to the burn address reached 289 million, which means that the average number of tokens sent to burn each transaction is around 107,000.
There was yet another round of foolishness in this narrative. On May 23, two days after the burning address was published, Do Kwon indicated that sending LUNA to that address is pointless and will result in token loss.
From the time the wallet address was originally leaked, 254 million LUNA was sent to the wallet and after the tweet revealed the useless idea, 25 million LUNA was transferred.
Terra Isn’t A Ponzi Scheme
Recently, there was a statement from Pennsylvania Senator Pat Toomey that Terra may be a fraudulent project. Of course, Toomey is not alone. Terra was a classic pyramid scam, according to prominent hedge fund manager Bill Ackman, who warned that such fraudulent ventures represent a threat to the whole cryptocurrency ecosystem.
After the failed blockchain project was linked to notorious biotech fraud Theranos, FTX CEO Sam Bankman-Fried pointed out that Terra was not a Ponzi scheme. He said this project was basically driven by “mass excitement”.
Meanwhile, South Korean officials have allegedly tried to seize the assets of Terra’s non-profit organization, Luna Foundation Guard, accusing Terra of theft. Almost all of the LFG’s money were spent on failed attempts to assist the TerraUSD (UST) stablecoin to reclaim its peg.
At the time of writing, Terra (LUNA) is trading at $0.0001633 and TerraUSD at $0.067
