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A Look into Terra’s Implosion — Fresh New Lows

As the crypto economy continues to drop by 14%, digital currency markets continue to fall in value. LUNA, the Terra native blockchain token, has fallen...
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As the crypto economy continues to drop by 14%, digital currency markets continue to fall in value. LUNA, the Terra native blockchain token, has fallen to $0.0156 an unit amid the market turmoil. Do Kwon, Terra’s founder, presented a plan Wednesday but, after some healing, Terra’s native tokens LUNA (and UST) continued to fall. People are starting to wonder about who funded this popular crypto project and which crypto firms were exposed to the failing assets.

LUNA Token’s Value Drops to a US Dollar, Do Kwon remains Quiet, Former TFL Employees Are Accused, Crypto Entities Announce Zero Terra Exposure
The Terra blockchain project, and Terraform Labs, have experienced a very rough week. The platform’s tokens fell in value against the U.S. Dollar during the past few days. The once stable terrausd (UST), coin fell to an all-time low $0.298 per unit on May 11, 2022.

LUNA also reached a low price of $0.0156 the next day. LUNA now ranks in the sub-100 range after having been a top-ten cryptocurrency coin according to market capitalization. Currently, UST is ranked 15th in crypto currency market valuation.

Do Kwon spoke to the community Wednesday. However, Terraform Labs founder is still silent on social media. Kwon was silent, but many entities working in crypto came forward to say that they were not exposed to Terra-based products or UST. “One of our Private users inquired me via DM regarding Crypto.com exposure to UST,” Kris Marszalek (CEO of Crypto.com), tweeted. “It’s $0. “It’s $0.

Despite Terra’s implosion the Major League Baseball (MLB), team the Washington Nationals made reference to Terra in a tweet. In mid-February, the Nationals partnered to the blockchain project and the team was supposed accept UST payments.

Several other firms came forward on Wednesday as well, including Multicoin Capital and Dragonfly. Onjuno,, more were also among them. However, some of the exposure claims against crypto firms were contested.

Apart from the exposure claims, Coindesk authors Sam Kessler & Danny Nelson reported that Do Kwon was allegedly involved in another failed stablecoin project, “Basic Cash”. An anonymous source claimed that Kwon was behind it, while another Terraform Labs (TFL), employee stated Kwon was behind it.

Terraform Labs had a long list of big name backers
Many have been talking about the backers of TFL as well as any other big names involved in the project. Laura Shin , a journalist, spoke on Twitter about TFL’s backers. TFL was able to raise millions of dollars from strategic investors.

Data shows the TFL investors were Pantera Capital and Arrington Capital XRP Capital. Kinetic Capital was also involved. Skynet Capital, Skynet Capital and Lightspeed Ventures were led by Sumit Gupta, Neil Dalal, True Ventures. Altonomy, Greylock Partners. Greylock Partners, Accel. Bain Capital. Sequoia Capital. Paxos.

Crunchbase indicates that TFL has been backed by 29 investors since 2018. Mike Novogratz, the founder of Galaxy Digital, was a big believer in Terra. In January, the founder of Galaxy Digital got a LUNA tattoo. Galaxy Digital led a $25 million round of funding with TFL, based in Singapore.

“What’s great is Terra is that they’re one of the first to get outside the sandbox […],” Novogratz was quoted as saying in a Bloomberg article that is only now available via Archive.org. Novogratz said, “We are always looking to those projects because they’re the canaries in coal mines of the future.” Since May 8, 2022, the Galaxy founder has not tweeted.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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