The collapse of Terra Luna (LUNA) was perhaps one of the worst events to occur in the crypto market ever since Bitcoin launched back in 2009. With this being the case, there is a large investigation underway to try to establish a chain of events leading up to the crash.
Now, Coindesk has released an article suggesting that the coin’s death spiral was initiated by a transaction activity of a wallet linked to the lead Terra developer. However, no clear motive for the activity has been identified yet.
This follows after an analysis completed by a South Korean blockchain analysis firm, Uppsala Security, which revealed that an Ethereum address, referred to as ‘Wallet A’ in the findings, helped push prices of UST off of its intended peg to the U.S. dollar.
According to the report released by the blockchain analytics firm, ‘Wallet A’ swapped over 86 million UST for USDC on May 7 – just after Terraform removed over 150 million UST from a liquidity pool on the crypto lending platform ‘Curve’.
Many of the big players in the crypto industry voiced their opinion over the LUNA crash and the project’s founder Do Kwon. One such person is the CEO of Binance, Chanpeng Zhao (CZ), who has actively criticized the project and its founder.
However, CZ has recently tweeted that the Coindesk report is incorrect as ‘Wallet A’ may not actually belong to Terraform labs. CZ was also quick to point out that he is not defending Terra and that he was merely “pointing out a mistake”.
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Source: Cryptocurrency - investing.com
