Luna Foundation Tried to Prop Up Terra’s Crumbling Base With Billions in Bitcoin, But It Still Failed

Terra founder Do Kwon had previously said that they would be providing documentation of the use of reserves, but the LFG’s latest tweets leaves several questions unanswered. CoinDesk has reported on some skeptical analysts who were confused by why much of the bitcoin ended up in major crypto exchanges Gemini and Binance, though it’s hard to determine what happened to the coins after that.

What likely didn’t help Luna support itself was the rapidly declining price of practically all crypto around that time, including bitcoin. CNBC reported last Thursday that bitcoin was hitting price lows it hasn’t seen in well over a year, and that investors lost a total of $200 billion during the rapid selloffs. Ether, the second biggest cryptocurrency next to bitcoin, has struggled to keep above trading at $2,000, compared to when it was going for over $4,400 at the end of 2021.

Luna and other cryptocurrencies’ fall these last two weeks has regulatory hounds ready to pounce. The International Organization of Securities Commissions is considering bringing a centralized regulatory body to what has traditionally been called decentralized finance.

This post was updated May 16 at 5:15 to amend the name of the stablecoin.