Disclosing Terra's Implosion and Terraform Labs' Big Name Backers
The digital currency markets have continued to plunge in value as the crypto economy has dropped by 14% during the past 24 hours. Amid the market rout, the native Terra blockchain token LUNA has dropped to fresh new lows, tumbling to $0.0156 per unit. Terra’s founder Do Kwon revealed a plan on Wednesday, but after some brief healing, Terra’s native tokens LUNA and UST continued to sink.
LUNA Token Value Drops to a US Penny, Crypto Entities Announce Zero Terra Exposure
The Terra blockchain project and the team Terraform Labs have had an extremely difficult week, as the platform’s two tokens slid down in value against the U.S. dollar during the last few days. On May 11, 2022, the once-stable terrausd (UST) coin dropped to an all-time low of $0.298 per unit.
The following day, LUNA nose-dived to a low of $0.0156 per coin, and LUNA is now in a sub-100 position, after being a top-ten crypto coin by market capitalisation. UST is currently ranked the 15th largest market valuation in the crypto economy today.
Do Kwon addressed the community on Wednesday, but the Terraform Labs founder has been silent again on social media. While Kwon was quiet, numerous entities in the crypto space came forward to explain that they had no exposure to UST or Terra-based products.
Despite Terra’s implosion, the Major League Baseball (MLB) team the Washington Nationals referred to Terra in a tweet. The Nationals partnered with the blockchain project in mid-February and the team was supposed to accept UST for payments.
Many others came forward during the course of the day on Wednesday, including firms like Multicoin Capital, Dragonfly, Onjuno, and more. Some of the crypto firms’ exposure claims, however, were contested.
Coindesk authors Sam Kessler and Danny Nelson reported on Do Kwon allegedly being involved with another failed stablecoin project called “Basic Cash.”
Terraform Labs Had a Long List of Big Name Backers
Meanwhile, many have been discussing the initial backers of TFL and any of the big names that were involved with the project. For instance, the journalist Laura Shin talked about TFL’s backers on Twitter. TFL managed to raise millions from strategic investors from a great deal of big companies.
Data shows that TFL investors included Pantera Capital, Arrington XRP Capital, Kinetic Capital, Coinbase Ventures, Galaxy Digital, James Sowers, Skynet Capital, Lightspeed Ventures, Sumit Gupta, Nemil Dalal, True Ventures, Altonomy, AVA Labs, Greylock Partners, Accel, Bain Capital, Sequoia Capital, Paxos, and more.
Crunchbase data notes that 29 investors backed TFL since 2018. Galaxy Digital and the company’s founder Mike Novogratz were big believers in Terra. The Galaxy Digital founder even got a LUNA-themed tattoo this past January. That same month Galaxy co-led a $25 million funding round with the Singapore-based TFL.
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