Bitcoin Cash

Bitcoin vs Ethereum: Community split between capped supply and deflationary model

Bitcoin proponents argued that Ether’s monetary policy had changed at least seven times while BTC has seen zero changes.

Bitcoin (BTC) and Ether (ETH), the top two cryptocurrencies by market capitalization, have always been pitted against each other. With the start of the new year, the first debate has surfaced comparing BTC’s capped supply of 21 million to ETH’s deflationary supply, with disagreement over which of the two qualifies as sound money.

An Ethereum-focused Twitter user called ‘ultra sound money’ compared the supply issuance of both cryptocurrencies and suggested that “if capped-supply BTC is sound then decreasing-supply ETH is ultrasound.”

if capped-supply BTC is sound

decreasing-supply ETH is ultra sound pic.twitter.com/L2tsFzPQ7q

— ultra sound money (@ultrasoundmoney) January 15, 2023

The comparison between the two didn’t sit well with BTC proponents, who quickly pointed out that soundness comes from the credibility of the monetary policy and not an ever-changing one. Dan Held, a famous Bitcoin proponent, pointed out the flaw in the argument and noted that a constantly changing one has less credibility. He said:

“Time builds trust with humans, it’s not all about code. According to your logic, if we spun up another crypto with more deflation, that would be “sounder.”

Another Bitcoin proponent questioned the credibility of Ethereum’s monetary policy, reminding that the same monetary policy has “changed a least 11 times in its seven years of existence.” On the other hand, Bitcoin has not changed its monetary policy once.

*Ether’s historical projected issuance rate. Source: ethhub.io*

Ether became deflationary in August 2021 with the introduction of Ethereum improvement proposal-1559 (EIP-1559). The upgrade introduced a burn mechanism that automatically burns a portion of the transaction fee, decreasing the overall circulating supply of ETH.

In response to Alex Gladstein’s argument that “admins” can arbitrarily change Ethereum’s monetary policy, independent Ethereum educator Anthony Sassano claimed that every change on the Ethereum network had been approved by the thousands of node operators run by community members.

The term “admins” implies that there is a small group with superuser powers that can change things on Ethereum which is completely false and has been proven false many times.

You can believe what you want about the sound money vs ultra sound money debate.

— sassal.eth (@sassal0x) January 16, 2023

Leo Glisic, the founder of the Maitri network, said that ETH had become sound money now, but BTC won’t hit its cap until the year 2140.

Bitcoin has faced similar monetary changes and tweaking of the original code in the past. The most notable one came during 2017 when there was a growing demand for increasing the Bitcoin block size to accommodate more transactions per block and make it more scalable.

The majority of the Bitcoin community remained against making any changes to the original code of Satoshi Nakamoto. As a result, the Bitcoin network experienced a hard fork in 2017, leading to the formation of Bitcoin Cash (BCH), a cryptocurrency with a block size of 8 MB against BTC’s 1 MB. However, today, BCH has had very little on-chain development and is currently trading at a 97% price drop from its all-time high.

Coinbase announces its wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

The crypto exchange plans to stop support for the four tokens on Dec. 5, but added any remaining funds would still be tied to users’ existing addresses.

United States-based cryptocurrency exchange Coinbase has said that starting on Dec. 5, the Coinbase Wallet will no longer support four major tokens.

On Nov. 29, Crypto Twitter users posted screenshots of help pages on the Coinbase app, saying that the wallet would no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC), and Stellar (XLM) as well as their networks. The crypto firm cited “low usage” of the four tokens in its decision to stop support starting on Dec. 5.

“This does not mean your assets will be lost,” said the announcement. “Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”

This story is developing and will be updated.

Coinbase Wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

The crypto wallet plans to stop support for the four tokens on Dec. 5, but any remaining funds will still be tied to users’ existing addresses.

Coinbase Wallet will no longer support four major tokens as of Dec. 5.

In a Nov. 29 notice on its help pages, Coinbase said the wallet will no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC) and Stellar Lumen (XLM), as well as their associated networks. The crypto firm cited “low usage” of the four tokens in its decision.

The announcement specifically refers to Coinbase’s app, Coinbase Wallet, and not the exchange itself delisting the tokens. The firm previously suspended trading for XRP in January 2021 in response to the United States Securities and Exchange Commission taking legal action against Ripple, a case that is still ongoing. It’s unclear what led to its wallet app removing support for BCH, XLM and ETC.

Coinbase has backed a group of investors filing a lawsuit against the U.S. Department of Treasury over its Office of Foreign Asset Control’s sanctions against crypto mixer Tornado Cash. The firm reported in November that its transaction revenue fell 44% from roughly $655 million in the second quarter of 2022 to $366 million in the third quarter.

Caribbean nation St. Kitts and Nevis may adopt Bitcoin Cash as legal tender by March 2023

The country’s prime minister says it is considering introducing Bitcoin Cash on a legal basis, despite being within the territory of the pioneering CBDC DCash.

The Caribbean nation of St. Kitts and Nevis may declare Bitcoin Cash (BCH) legal tender by March 2023. Prime Minister Terrance Drew made that announcement while he spoke at the Bitcoin Cash 2022 conference in St. Kitts on Nov. 12.

St. Kitts and Nevis is a member of the Eastern Caribbean Central Bank and part of the ECCB’s DCash central bank digital currency (CBDC) program, which was launched in March 2019. “Our nation has always been a forward-thinking nation and a leader in exploring new technologies that can advance our people,” Drew said, but he added:

“I can confirm that we are prepared to explore that possibility with the guidance of experts and professionals and after consultation with our regional banking system. […] I welcome the opportunity to dialog further with a view to exploring future opportunities to engage in Bitcoin Cash mining and making Bitcoin Cash legal tender here in St. Kitts and Nevis by March 2023, once safeguards to our country and our people are guaranteed.”

Bitcoin Cash was created from Bitcoin (BTC) in a 2017 fork. The DCash program has had technical problems that have impeded adoption. Besides introducing new competition to DCash, the Caribbean nation may be eyeing its replacement. Sint Maarten Member of Parliament Rolando Brison spoke after Drew and expressed his support for Bitcoin Cash and his opposition to a CBDC.

Brison opposed CBDC as “too much of a danger to consider.” He said:

“I love the fact that in our jurisdiction, the central bank has at least been open enough to say and admit, ‘We don’t have the capability to monitor and engage and promote and safeguard something like this.’ […] If they can’t properly regulate the banking sector, […] why would I give them now a huge mandate to do something that they have no idea about? […] The legislator should be the one to have a say on what happens in regulation.”

The Prime Minister of St. Kitts and Nevis just announced that #BitcoinCash will become legal tender in his country by March 2023. A big step for BCH as no nation can outlaw the currencies of other nations. Mass utilization with amazing new apps is next. pic.twitter.com/WjnaZxGv50

— Kim Dotcom (@KimDotcom) November 13, 2022

Programmer spends 69 nights in Bitcoin Cash City using only BCH: Here’s how it went

Silverblood says using Bitcoin Cash as payment method “makes sense” because it’s part of his income and “it’s less effort than some of the other forms of payment I use.”

When programmer Jonathan Silverblood flew to Townsville, Australia from his Finland home for a two-and-a-half-month holiday in August, he had one main task — pay for everything he could using Bitcoin Cash (BCH).

The coastal city of Townsville is known as the Bitcoin Cash City, a name derived from a conference of the same name that first launched in 2019. It is understood to have a strong number of merchants that accept the Bitcoin-forked token.

Silverblood said while attending the conference in 2019, he was intrigued by the number of merchants and vendors offering BCH as a payment option in Townsville and had planned a return to the city once COVID-19 restrictions were lifted.

I have now been in #Townsville, the #BitcoinCashCity for for 59 days and I have made 97 bitcoin cash transactions to pay for living. That does not include the transactions that the rest of my family have done, and the transactions when I’ve been a guest and someone else paid…

— Jonathan Silverblood (@monsterbitar) October 8, 2022

“Going to this destination was entirely about using BCH and was also kind of an excuse to spend more than I usually do, while simultaneously getting more work done by letting family and kids have a vacation with their grandma,” he told Cointelegraph after he returned home from the trip.

“Using it to pay for things while I was there just made sense, partially because I already have my income paid in BCH, and partially because it’s just so much less effort than some of the other forms of payment I use.”

Silverblood is a Bitcoin Cash enthusiast and programmer. He has been working at General Protocols for the last three years, where his salary is paid in BCH.

He noted that in the 69 nights he spent in the city, he was ultimately able to conduct 130 transactions using Bitcoin Cash. These included goods and services at cafes, restaurants, and hotels, getting a tooth pulled at a dentist, a haircut and getting a Steam Deck gaming console repaired:

“Some days were pretty busy; we would buy breakfast, lunch, ice cream, bread and dinner, but sometimes my family wanted to go elsewhere rather than eat at the specific BCH accepting merchants.”

Silverblood also made several payments using BCH that weren’t with businesses in Townsville, including Steam and Netflix gift cards, “plus a few bills back home.”

However, his Bitcoin Cash-funded holiday was not without its hiccups.

Silverblood says his experience using BCH as a payment method was successful but not “wildly successful” because of issues with payment terminals running out of power, WiFi access and some merchants being unable to offer crypto as an option at the time of payment.

“When I got to the airport in Townsville I also wanted to pay for a cab ride to the hotel, but a competing cab company bought up the cab company that took BCH, so that was no longer an option.”

He also found that not all merchants were open to the idea of using BCH because they did not want to “complicate bookkeeping” and “couldn’t stomach the volatility.”

“For most merchants I spoke with during my trip, it seems to just be that the number of customers paying with crypto is just too small to motivate additional staff education costs, additional hardware like WiFi and payment terminals,” Silverblood said.

“Cryptocurrencies are here, and they work, but merchant adoption is slow and spread out, which makes it hard to live entirely off,” he added.

Silverblood said he also didn’t end up buying his plane tickets with BCH, as his family wanted to fly Qatar Airways specifically, which doesn’t currently accept crypto as a payment method.

This is despite the airline launching their own metaverse in July.

Silverblood and his family have since returned home to Finland, but the programmer is confident this won’t be the last time he will use crypto to pay for goods and services.

“Can’t bitcoin the dentist, can’t bitcoin my breakfast, can’t even use bitcoin at bitcoin conventions”

… I have now done all of those in the #BitcoinCashCity #Townsville. I am so going to miss this place when I fly home tomorrow.https://t.co/dj2l8TopEp

— Jonathan Silverblood (@monsterbitar) October 18, 2022

“I will absolutely try and do something like this again, in just a few weeks, I’m flying over to another Bitcoin Cash hotspot, St Kitts, for the BCH 2022 conference,” he said.

“I don’t know what to expect there though, I’ve heard everything from 100% all merchants accept it, only half do and merchants will accept it, but you need a special wallet.”

Ethereum chain split is possible after the Merge, survey finds — But will ETC price keep climbing?

Ethereum Classic is a relatively smaller PoW chain compared to Ethereum in terms of usage and hash rate.

Ethereum’s proof-of-work (PoW) powered by GPUs generated approximately $19 billion in revenue last year for ETH miners. But these revenue streams are in danger as Ethereum is expected to become a proof-of-stake (PoS) blockchain via “the Merge” upgrade in September.

Miners could then revolt against the new upgrade by continuing to mine on the old Ethereum PoW after the hard fork chain split.

A survey from crypto hedge fund Galois Capital recently revealed that 33.1% of respondents believe that the Merge would create two parallel blockchains: ETH1 (PoW) and ETH2 (PoS).

Question 1: What happens during the merge? If Choice 2 or 3 go to Questions 2-5.

— Galois Capital (@Galois_Capital) July 27, 2022

Nevertheless, most respondents, or 53.7%, expect Ethereum’s chain to smoothly transition from PoW to PoS.

Is the ETH1 PoW “illogical”?

But contentious hard forks aren’t anything new. In fact, the current Ethereum chain came to be in 2016 following a controversial hard fork aimed at reversing a $60 million exploit, resulting in a chain split between Ethereum and Ethereum Classic (ETC).

This is where the argument of Ethereum Classic versus ETH1 begins. Since Ethereum Classic is already a PoW chain, creating a similar chain, ETH1, will not have “much relevance,” according to some Redditors.

Several other comments from Reddit explaining why ETH1 will fail include:

ETH1 will not attract users;
Decentralized finance and the nonfungible toke sector will collapse on a PoW chain; and
Traders will dump ETH1 tokens to stake more ETH.

Meanwhile, most respondents in the Galois Capital survey also believe that exchanges and projects (especially Tether) will support ETH2 over ETH1 in the event of a hard fork.

Question 4: How do exchanges handle perps and futs?

— Galois Capital (@Galois_Capital) July 27, 2022

What does it mean for Ethereum Classic?

After reaching a record high in May 2022, the Ethereum network’s hash rate has been downtrend, indicating that miners are pausing or shutting down their rigs in the weeks leading up to the Merge.

On the other hand, they could also be becoming stakers on the Ethereum’s PoS chain.

*Ethereum hash rate performance since September 2021. Source: YCharts*

The miners’ exit from the Ethereum network is visible in the recent increase in GPU sales in the secondary market (against lower demand), according to Tom’s Hardware GPU Pricing Index.

Nonetheless, there’s also an uptick in the number of social media threads that shows the miners’ strategy after the Merge will likely be to switch to whatever PoW chain is more profitable.

As of July 29, Ethereum Classic was topping miners’ interest for its 116% weekly profitability, data on WhatToMine.com shows.

Amazing – miner revenue/hash in USD for ETC has just surpassed that for ETH… (chart @coinmetrics) pic.twitter.com/x5RJs7lUrj

— Noelle Acheson (@NoelleInMadrid) July 29, 2022

Simultaneously, the price of ETC has soared by more than 200% in July.

*ETC/USD daily price chart. Source: TradingView*

But that does not take away the fact that Ethereum Classic is a very small project compared to Ethereum.

As of June 29, Ethereum Classic had over 53,000 daily active addresses versus Ethereum’s 763,000.

*Ethereum Classic daily active addresses. Source: BitInfoCharts.com*

The difference suggests that ETC’s ongoing price boom is purely speculative since Ethereum Classic remains largely underutilized as a chain and with only a handful of projects. Therefore, ETC is certainly at risk of a “sell the news” event after the Merge.

At the same time, a potential ETH1 PoW chain may also push down demand for ETC.

ETC price target

On the weekly chart, ETC’s price has reached a resistance confluence, awaiting a breakout as the euphoria surrounding the Merge grows.

The confluence comprises the 0.786 Fib line (~$43) and a multi-month descending trendline. Both have historically capped ETC’s bullish attempts in the past, as the chart below illustrates.

Nonetheless, a breakout move increases the token’s potential to hit $75 next, due to its proximity to the 0.618 Fib line.

*ETC/USD weekly price chart. Source: TradingView*

Conversely, a pullback move from either the resistance confluence or the 0.618 Fib line could have ETC eye a drop toward the support area illustrated above. It is defined by the red bar, the multi-year rising trendline support (purple) and the descending channel’s lower trendline (green).

In other words, ETC risks dropping toward the $10–$12 area by September, down 75% from July 29’s price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Top 5 cryptocurrencies to watch this week: BTC, ETH, BCH, AXS, EOS

If Bitcoin clears its overhead resistance level, ETH, BCH, AXS and EOS could resume their uptrend with surprising strength.

The bulls are attempting to achieve a strong weekly close for Bitcoin (BTC), while the bears are attempting to regain their advantage. Analysts are closely watching the 200-week moving average, which is at $22,705, and BTC’s current setup suggests that a decisive move is imminent.

Many analysts expect a weekly close above the 200-week moving average (MA) to attract further buying, but a break below it could signal that bears are back in the game. Although the short-term picture looks uncertain, analyst Caleb Franzen said that Bitcoin has been in an accumulation zone since May.

*Crypto market data daily view. Source:* *Coin360*

Meanwhile, on-chain analytics firm CryptoQuant highlighted increasing outflows of Ether (ETH) from major exchanges, totaling $1.87 million coins on July 22. Usually, outflows from crypto exchanges suggest that traders are bullish for the long-term, hence they may be moving their coins to stronger crypto wallets for safety.

Could Bitcoin resume its recovery, attracting buying in select altcoins? Let’s study the charts of the top-5 cryptocurrencies that look strong on the charts.

BTC/USDT

The bears tried to sink Bitcoin back into the symmetrical triangle on July 23, but the bulls had other plans. The rebound off the breakout level from the triangle indicates that buyers are defending the level aggressively.

The gradually rising 20-day exponential moving average (EMA) of $21,865 and the relative strength index (RSI) in the positive territory indicate an advantage to buyers.

If bulls sustain the price above the 50-day simple moving average of $22,384, the BTC/Tether (USDT) pair could rally to the overhead resistance zone between $23,363 and $24,276. A break and close above this level could open the gates for a rally to the pattern target at $28,171 and then to $30,000.

Conversely, if the price slips below the 20-day EMA, the pair could decline to the next support at $20,500.

*BTC/USDT 4-hour chart. Source: TradingView*

The pair has formed a falling wedge pattern on the 4-hour chart. If buyers drive the price above the wedge, the pair could retest $24,276. A break and close above this level could signal the resumption of the uptrend.

The 20-EMA is flat and the RSI is near the midpoint, indicating a balance between supply and demand. If the price turns down and breaks below the 50-SMA, the pair could drop to the support line of the wedge.

ETH/USDT

Ether is facing stiff resistance at $1,700 but a positive sign is that buyers have not given up much ground. A tight consolidation near the overhead resistance increases the likelihood of a break above it.

The upsloping 20-day EMA of $1,384 and the RSI in the positive territory indicate that bulls have the upper hand. If buyers drive the price above $1,700, the bullish momentum could pick up, and the ETH/USDT pair could rise to $2,000, followed by a rally to $2,200.

Contrary to this assumption, if the price turns down from $1,700, the bears will try to pull the pair below the 20-day EMA. If they succeed, the pair could drop to $1,280. A bounce off this level could keep the pair stuck between $1,280 and $1,700 for a few days.

*ETH/USDT 4-hour chart. Source: TradingView*

The pair bounced off the 50-SMA, indicating that bulls are buying on dips. The buyers will attempt to push the price to the overhead resistance at $1,700. Both moving averages are sloping up and the RSI is in the positive territory, suggesting that the path of least resistance is to the upside.

If bulls push the price above the $1,650 to $1,700 resistance zone, the momentum could pick up and the pair could resume its uptrend. To invalidate this positive view, the bears will have to sink the pair below $1,450.

BCH/USDT

Bitcoin Cash (BCH) is attempting to form a bottom after an extended downtrend. The price turned down from the $135 overhead resistance on July 20, but a positive sign is that the bulls defended the 20-day EMA of $117 aggressively.

The price action of the past few days has formed a rounding bottom pattern, which will complete on a break and close above $135. If that happens, it will suggest that the BCH/USDT pair may have bottomed out at $95. The pair could then rise to the pattern target at $175 and later to $200.

Another possibility is that the pair may consolidate between the 20-day EMA and $135 for some time. A break below the 20-day EMA could tilt the advantage in favor of the bears.

*BCH/USDT 4-hour chart. Source: TradingView*

The bulls have pushed the price above the resistance line on the 4-hour chart, opening the doors for a possible retest of $135. The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers drive the price above $135, the pair could pick up momentum and rally toward $157.

Contrary to this assumption, if the price slips below the 20-EMA, the pair could drop to the 50-SMA and later to $117. A break below this level could tilt the advantage in favor of the bears.

AXS/USDT

Axie Infinity (AXS) has been consolidating in a downtrend. This suggests that the bulls are attempting to form a bottom.

The 20-day EMA of $15.55 has flattened out and the RSI is in the positive zone, indicating a balance between supply and demand. This balance could tilt in favor of the buyers if they propel the price above the overhead resistance at $18.53. If that happens, the AXS/USDT pair could start a rally toward $25.21 and then to $28.20.

Alternatively, if the price turns down from $18.53 and breaks below the moving averages, it will indicate that the pair may spend some more time inside the range. The bears will have to sink the price below $11.85 to gain the upper hand.

*AXS/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price turned down sharply from the overhead resistance at $18.53, indicating aggressive selling by the bears. The sellers will now try to pull the pair to the 20-EMA. If the price rebounds off this level, the buyers will again attempt to clear the overhead resistance. If they manage to do that, it will indicate the start of a new up-move.

On the contrary, if the price breaks below the 20-EMA, the pair could slide to the 50-SMA. This is an important level to keep an eye on because if it cracks, the bullish momentum may weaken.

EOS/USDT

EOS (EOS) broke above the moving averages on July 18 and completed a successful retest of the 20-day EMA of $1.05 on July 21.

The moving averages have completed a bullish crossover and the RSI is near the overbought territory, indicating that bulls have the upper hand. The price could rise to $1.46 where the bears may mount a strong defense.

If the EOS/USDT pair does not give up much ground from $1.46, it will suggest that traders are not dumping their positions. That could improve the prospects of a rally above $1.46. Such a move will suggest a potential change in trend.

This positive view could invalidate if the price turns down from the current level and breaks below the moving averages.

*EOS/USDT 4-hour chart. Source: TradingView*

Both moving averages are sloping up on the 4-hour chart and the RSI is near the overbought zone, indicating that the pair is in an uptrend.

The pair is facing resistance near $1.26, but the buyers have not given up much ground. This suggests that the bullish momentum remains strong. If the price turns up and breaks above $1.26, the rally could reach $1.33 and then $1.46.

Contrary to this assumption, if the price slips below $1.20, the next stop could be at the 20-EMA. If this support also cracks, the decline could extend to the 50-SMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

No flexing for Bitcoin Cash users as BCH loses 98% against Bitcoin

Amid controversy surrounding major supporter Roger Ver, the Bitcoin hard fork plumbs new depths in BTC terms.

Bitcoin (BTC) has hit new record highs this week — not in U.S. dollar terms, but against its longtime competitor, Bitcoin Cash (BCH).

Data from Cointelegraph Markets Pro and TradingView confirms that on June 29, BCH/BTC officially set its lowest ever price.

CoinFLEX debacle ensnares BCH supporter Ver

Bitcoin Cash, also known as “Bcash” by those critical of the coin’s ethos and future, gained notoriety in 2017 when it became the first major hard fork of the Bitcoin network to take on BTC itself.

Months after launching, the altcoin hit highs of around 0.43 BTC per token, this proving something of a fakeout for investors who have spent the intervening period watching its value steadily decline.

Arguably the most vocal BCH supporter, entrepreneur Roger Ver, has nonetheless continued to tout its supremacy over Bitcoin, with price woes having little impact on his rhetoric.

This month, however, Ver courted controversy when reports emerged that he owed $47 million in stablecoin USD Coin (USDC) to crypto investment platform CoinFLEX.

Ver denies the claims, with a social media storm ensuing which is ongoing this week. Regardless of the outcome, its impact on BCH has been palpable. On June 29, BCH/BTC fell to new all-time lows of just 0.005 — 98.83% below its 2017 peak.

*BCH/BTC 1-month candle chart (Binance). Source: TradingView*

The event was not lost on commentators, many of whom remembered Ver’s insistence that BCH would rise to replace BTC altogether.

$BCH now lower than it was in the winter of 2018-2019.

— Alex Krüger (@krugermacro) June 28, 2022

How it started vs. How it’s going:

(Roger Ver / BCH edition) pic.twitter.com/kNcRjsujhU

— K A L E O (@CryptoKaleo) June 28, 2022

Even Bitcoin SV outperforms BCH

For another vehement anti-Bitcoin spin-off, the situation is barely any better.

Bitcoin SV (BSV), the offspring of BCH which emerged during community infighting, hit all-time lows of its own against BTC in May.

Since then, a modest rebound has occurred, taking BSV/BTC to 0.0016 BTC — a mere 94.48% below its all-time high of 0.029 BTC seen at the start of 2020.

*BSV/BTC 1-month candle chart (Binance). Source: TradingView*

On the plus side, BSV now buys more BCH than at any time since December of that year.

*BSV/BCH 1-week candle chart (Binance). Source: TradingView*

Do Kwon dismisses allegation of cashing out $2.7B from Terra (LUNA), UST

The rumor surfaced after a Twitter thread by @FatManTerra shared the alleged details on how Kwon, along with Terra influencers, managed to drain funds while artificially maintaining the liquidity.

Do Kwon, the CEO and co-founder of the infamous Terra (LUNA) and TerraUSD (UST) ecosystems, refuted the claims of cashing out $80 million every month for nearly three years.

Numerous unconfirmed reports surfaced on June 11, claiming Kwon’s participation in draining liquidity out of LUNA and UST before the crash to purchase US dollar-pegged stablecoin such as Tether (USDT).

Rumors about Kwon cashing out LUNA and UST reserves surfaced after a Twitter thread by @FatManTerra shared the alleged details on how Kwon, along with Terra influencers, managed to drain funds while artificially maintaining the liquidity.

Some of you thought $80m per month was bad. That’s nothing. Here’s how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA & UST system and into hard money like USDT. (1/13)

— FatMan (@FatManTerra) June 11, 2022

However, the entrepreneur advised the crypto community to steer away from fueling the rumor until it was proven true:

“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”

Sharing his side of the story, Kwon stated that the recent rumor of cashing out $80 million per month contradicts the claims that he still holds most of his LUNA holdings, procured during the airdrop. Moreover, Kwon further reiterated that his income over the past two years has only been a cash salary from TerraForm Labs (TFL).

3/ To reiterate, for the last two years the only thing ive earned is a nominal cash salary from TFL, and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of “he has too much”

— Do Kwon (@stablekwon) June 12, 2022

Kwon told the community that “spreading falsehood” adds to the pain of all LUNA investors, remarking that:

“I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too. I’ve said this multiple times but I really don’t care about money much.”

Mr. B, a developer from Anchor Protocol, a Terra-centric sub-ecosystem, allegedly warned Kwon about the unrealistic high-interest rates. Mr. B said that the platform was designed only to offer an interest rate of 3.6% for keeping the Terra ecosystem stable, but was changed to 20% just before the release:

“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%.”

The developer allegedly suggested to Kwon about lowering the interest rates but the request was refused. Do Kwon has been summoned to attend a parliamentary hearing on the matter in South Korea in mid-May.

Do Kwon dismisses allegation of cashing out $2.7B from LUNA, UST

The rumor surfaced after a Twitter thread by FatManTerra shared the alleged details on how Kwon, along with Terra influencers, managed to drain funds while artificially maintaining the liquidity.

Do Kwon, the CEO and co-founder of the infamous Terra (LUNA) and TerraUSD (UST) ecosystems, refuted the claims of cashing out $80 million every month for nearly three years.

Numerous unconfirmed reports surfaced on Saturday, claiming Kwon’s participation in draining liquidity out of Luna Classic (LUNC) and TerraUSD Classic (USTC), before the crash to purchase United States dollar-pegged stablecoin such as Tether (USDT).

Rumors about Kwon cashing out LUNA and UST reserves surfaced after a Twitter thread by FatManTerra shared the alleged details on how Kwon, along with Terra influencers, managed to drain funds while artificially maintaining the liquidity.