Do Kwon, the now-famous Terra CEO and founder, published on Twitter on May 21 a dead wallet address where people may send their LUNA tokens to be burned. The uploaded wallet was filled with nearly 280 million LUNA tokens, making the tweet one of Do Kwon’s most popular.
With 2,719 transactions, the total amount of LUNA transferred to the burning address has reached 289 million, meaning that the average number of tokens sent to burn every transaction is roughly 107,000.
There was yet another round of foolishness in this narrative. On May 23, two days after the burning address was published, Do Kwon indicated that sending LUNA to that address is pointless and will result in token loss.
From the moment the wallet’s address was originally disclosed, 254 million LUNA were sent to the wallet and after the tweet exposed the useless idea, there were 25 million LUNA transferred.
Terra Isn’t A Ponzi Scheme
Recently, there was a statement from Pennsylvania Senator Pat Toomey that Terra may be a fraudulent project. Of course, Toomey is not alone. Terra was a classic pyramid scam, according to prominent hedge fund manager Bill Ackman, who warned that such fraudulent ventures represent a threat to the whole cryptocurrency ecosystem.
After the failing blockchain project was linked to the famed biotech fraud Theranos, FTX CEO Sam Bankman-Fried remarked that Terra wasn’t a Ponzi scheme. He stated that this project was basically driven by “mass excitement.”
Meanwhile, South Korean officials have allegedly tried to seize the assets of Terra’s non-profit organization, Luna Foundation Guard, accusing Terra of theft. Almost all of the LFG’s money were spent on failed attempts to assist the TerraUSD (UST) stablecoin to reclaim its peg.
At the time of reporting, Terra (LUNA) is trading at $0.0001633 and TerraUSD at $0.067