- Do Kwon, CEO and founder of Terraform Labs, has accepted two $1 million and $10 million wagers that the price of Terra’s LUNA token will be higher than $88 and 92.4 in a year.
- Late Sunday, pseudonymous crypto investor Sensei Algod began the gamble, then 15 hours later, another pseudonymous Gigantic Rebirth initiated the same wager but 10x the wager.
- All three parties have sent a total of $22 million to UpOnly podcast presenter Cobie, who is serving as an escrow between them.
Do Kwon, the founder of Terraform Labs, has accepted two wagers totaling $11 million on the future price of his own project Terra (LUNA) from Sensei Algod and Gigantic Rebirth.
According to the terms of the first wager, Sensei Algod will win if the price of LUNA is lower in a year’s time, while Kwon will win if the price is higher.
The price of LUNA was around $88 at the time the wager was accepted, and UpOnlyTV co-host Cobie is acting as an escrow for the wagered funds.
On March 14, 2023, both parties in the wager agreed to utilize the time-weighted average price (TWAP) for LUNA on Coingecko. TWAP stands for the average price of an asset over a given period of time.
As escrow for the wagered monies, Cobie offered an address under his control. According to Etherscan, each party has already deposited $1 million in tether (USDT).
Gigantic Rebirth, a pseudonymous crypto investor, put a $10 million gamble on the same terms but at a different price level 15 hours after Sensei Algod placed the first wager. Do Kwon then agreed to match the wager.
According to the terms of the second wager, Gigantic Rebirth will win if the price of LUNA is lower than $92.48 in a year’s time, while Kwon will win if the price is higher.
Also, according to Gigantic Rebirth, “the bet is void if there is a redenomination to manipulate price despite a cratering market cap,” which is one of the terms and conditions of the wager to which Do Kwon committed.
Do Kwon further stated that regardless of the outcome of the wager, he will donate $1 million to Angel Protocol, a Terra-based protocol for generating permanent charitable endowments, and spend another $1 million on purchasing and burning Terra-based coins.
Terra LUNA has a market cap of $33.74 billion and is now trading at $90.67. The token has risen about 100% in the last month in these uncertain times making it one of the best-performing major cryptocurrencies.