Terra LUNA Classic Has No Future, Say Terraform Labs Insiders

06/07/2022

2 minutes read

2022.06.07 10:06

Verified LUNC validators gave insights on the war room conversations before the launch of Terra 2.0.
LUNC and LUNA trade at $0.00008555 and $5.39, respectively.
Do Kwon was least involved in the war room instituted before the launch of the new Terra chain.

In an interview series, a group of insiders revealed that Do Kwon, the CEO of Terraform Labs (TFL), was least involved in the war room instituted before the launch of the new Terra chain, Terra 2.0.

These were the verified LUNA validators involved in the launch of TFL’s new chain.

Based on the chat logs, validators ThorchainMaximalist and PFC said there were significant issues with the process of handling the Terra crisis. They noted that during the meltdown, they lost the brunt of their net worth.

The group also said they had abandoned on-chain governance since people scooped up billions of Terra LUNA Classic (LUNC) in the last hours of the crash. This would leave on-chain governance in the hands of the people who accumulated most LUNC tokens.

When asked about the future of LUNC, they expressed a negative outlook for the token. One of the validators said:

I don’t think it has much future. I actively validate on classic and will continue to do so until it has no traffic. People are still using it, and getting value from it.. so who knows it may continue to run for a while, and get its group of people using it.

Changpeng Zhao, the CEO of Binance, tweeted that Binance Labs made an investment of $3 million in Terra in 2018, in which they received 15 million LUNA tokens in exchange for their investment. However, Binance lost the invested capital making any profit from the position. The CEO also known as “CZ” argued that the investment was worth $1.6 billion at its peak.

2/ Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) invest. 560x return at peak. It still sits on the address we received at . Never moved or sold. Address:https://t.co/6HwTu6CCuB

— CZ Binance (@cz_binance) May 16, 2022