Anonymous analyst Fat Man Terra yet again de-bunks Do Kwon’s narrative about an “attack” on the UST/LUNA system
Fat Man Terra shares data from another anonymous analyst who goes by the handle @Cycle_22 on Twitter. It shows how Terraform Labs sold a massive $450 million in UST in April 2022 – and how it ended.
UST peg was allegedly destroyed by Terraform Labs
Fat Man Terra took to Twitter to allege that the Terraform Labs team is behind the May collapse of Terra USD (UST) and Terra (LUNA) based on new on-chain data published by the Cycle 22 analyst.
In general, as Fat Man Terra points out, it seems that Do Kwon and his team mined Terra USD (UST) out of thin air with their Luna token. There was no real US dollar value backing this new supply.
That’s why the collapse of Terra (LUNA) was a matter of “when”, not “why”. In mid-April, the addresses associated with Terraform Labs’ bots started sending UST en masse to Curve Finance (CRV) pools.
This process triggered the collapse of the entire ecosystem, not a third party attack as was previously claimed by various sources.
Why was Anchor Protocol dangerous?
Moreover, the correlation between Terraform Labs and its addresses identified by analysts was confirmed by Terra’s team itself in its audit.
Fat Man Terra recalls that Users of the Anchor Protocol (ANC) became the hardest hit project during the collapse. The DeFi vehicle was aggressively pitched by Kwon and his partners with 19.5% in APY on UST deposits.
Also, he sent 47 Bitcoins (BTC) of the reserve funds to the Jump Crypto trading firm without logs: as such, the firm’s role in the UST de-peg should be investigated.
