Ponzi Scheme Accusations Against LUNA Re-Emerges Following Unsavory Utterances from Terra CEO
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While some argue that he was joking, considering his reputation for humor on social media, many have criticized the embattled CEO for his comments on the video.
In the video, Kwon is heard saying “Terra will go to nothing,” and “I feel like the Bitconnect guys.” The circulating video has resurrected accusations of LUNA being a Ponzi scheme.
In the first clip, the Terra founder noted:
“It’s a cycle of life – you begin from nothing and go back to nothing. That’s where I want to be. I think Terra’s going to be the decentralized money standard across the entire blockchain, and I’m excited for Terraform Labs to contribute a significant part of that early vision, but eventually to go back to nothing.”
In another video, a Kwon-led crowd is heard chanting ‘UST’ repeatedly, in a manner similar to multi-level marketing conferences and the 2017 footage from the Bitconnect Ponzi scheme, which the CEO refers to on stage.
Path of Recovery for LUNA
Terra (LUNA) made its debut on Binance in August 2020 with an opening price of $0.53 before reaching a peak of $119.55 in April 2022. LUNA has since lost 99.999% in what many have described as a Ponzi scheme-grade crash.
That said, LUNA currently trades around the $0.00014 level after rebounding from its lifetime low of $0.00000112 against the BUSD. As explained in our previous LUNA report, it remains to be seen how the cryptocurrency can return to its previous price levels without burning a large chunk of its 6.5 trillion supply.
With its current supply, the best LUNA can do is return to its pre-crash valuation of $44 billion, which would give each token a value of only $0.006.
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