Uncovering Terra’s Implosion – Terraform Labs’ Big Name Backer and “Zero Exposure” Claims – Bitcoin News

The value of the digital currency market continued to slide as the crypto economy fell 14% in the past 24 hours. Amid the market rout, native Terra blockchain token LUNA fell to a new low, falling to $0.0156 per unit. Terra’s founder, Do Kwon, revealed a plan on Wednesday, but after a brief recovery, Terra’s native tokens, LUNA and UST, continued to plummet. Now people are starting to wonder who is backing the popular crypto project and which crypto companies have a lot of exposure to the failed asset.

LUNA Token Value Falls to One Cent, Do Kwon Remains Silent, Ex-TFL Employee Comes Forward, Crypto Entity Announces Zero Terra Exposure

The Terra blockchain project and the Terraform Labs team have had an incredibly rough week as both of the platformโ€™s tokens have been shaking in value against the U.S. dollar over the past few days. On May 11, 2022, the once-stable terrausd (UST) token fell to an all-time low of $0.298 per unit.

Also, on the second day, LUNA hit a low of $0.0156 per coin and after the top 10 crypto coins by market cap, LUNA is now below 100. UST currently ranks as the 15th largest market valuation in the crypto economy today.

Uncovering Terra's Implosion - Terraform Labs' Big Name Backer and
LUNA/USD on May 12, 2022.

After Dao Quan fixed Community On Wednesday, the Terraform Labs founder remained silent again on social media. While Kwon was quiet, many entities in the crypto space came forward to explain that they had no exposure to UST or Terra-based products. “One of our private users DMed me about the impact of Crypto.com on UST,” Crypto.com CEO Kris Marszalek, tweet. “This is $0. UST has never been listed on Crypto.com and we are not involved in Anchor Yield Farming.”

although Tyra’s ImplosionMajor League Baseball (MLB) Washington Nationals mentioned Terra in a tweet. Nationals cooperating Working with the blockchain project in mid-February, the team was supposed to accept UST payments.

Many others came forward during the day on Wednesday, including people like Multicurrency Capital, dragonfly, On Juneau, and more. However, some of the exposure claims of crypto companies are controversial.

In addition to the revelations, Coindesk authors Sam Kessler and Danny Nelson also reported on Do Kwon’s alleged involvement in another failed stablecoin project called “Basic Cash.”according to Reporta former Terraform Labs (TFL) employee said Kwon supported the project, and an anonymous source said other “TFL employees supported the project.”

Terraform Labs has a long list of big-name backers

At the same time, many have been discussing TFL’s original backers as well as any prominent people involved in the project.For example, journalist Laura Shin discussed TFL supporter on Twitter. TFL has successfully raised millions of dollars from strategic investors in numerous well-known companies.

Data Display That TFL investors Including Pantera Capital, Arlington Ripple 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 Point out that 29 investors have backed TFL since 2018. Galaxy Digital and company founder Mike Novogratz is a big believer in Terra. The Galaxy Digital founder even got LUNA-themed tattoos January this year. That same month, Galaxy co-led a $25 million funding round with Singapore-based TFL.

“The great thing about Terra is that they were the first sandbox experiments out of the sandbox [โ€ฆ],” Novogratz was quoted as saying in a Bloomberg story, now only available through Archive.org. “We’ve been following these projects because they’re the canary in the coal mine, a harbinger of what’s to come, Novogratz added. The Galaxy founder has not tweeted since May 8, 2022.

tags in this story

accelerate, autonomy, Arlington Ripple Capital, AVA Labs, Bain Capital, Coinbase Ventures, Crypto.com, do right, dragonfly, Galaxy Digital, Greylock Partners, James Sowers, Kinetic Capital, Lightspeed Ventures, Luna, Mike Novogratz, Multicurrency Capital, Nemir Dalal, Win Juneau, Capital Leopard, Paxos, Sequoia Capital, Skynet Capital, stablecoin, Sumit Gupta, the earth, Terrain Lab, true venture capital, American University of Science and Technology, washington nationals

What do you think of the implosion of the Terra project and the backers investing in TFL? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.

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