Terraform Labs Shocks Market by Moving Millions in Tokens Following Terra-LUNA Crisis
- Carleton Nitzsche
- May 9, 2023
- Altcoin, Cryptonews, News
- Crypto, LUNA, LUNC, Terra, Token
- 0 Comments
On Tuesday, Terraform Labs, co-founded by Do Kwon and Daniel Shin, transferred millions worth of Convex Finance (CVX) tokens to a different wallet. This relocation occurred around one year after the crisis of Terra-LUNA, which led to a $40 billion loss for investors and brought about more stringent regulations in the realm of digital currency.
CVX Token Movement
Terraform Labs, a major stakeholder of Convex Finance (CVX), had locked up a substantial amount of tokens last year. However, after 277 days of dormancy, a wallet address linked to Terraform Labs transferred 1.8 CVX tokens worth almost $8.7 million to a wallet address that starts with 0x15A on May 9, according to the Etherscan data.
Subsequently, Terraform Labs also moved around hundred CVX tokens in the same 0x15A5 wallet address. Additionally, another notable transfer of around 1.83 million CVX tokens worth $8.8 million was also made to the same wallet address. Presently, the wallet does not hold any CVX tokens, but it does contain Convex CRV (cvxCRV) tokens worth $26.5k.
Terraform Labs had vote-locked over 2 million CVX, but the contract was deemed invalid due to inactivity. The most recent transaction involving CVX happened on August 4, 2022, and the transfer of 1.8 million CVX today is the first activity after a period of 278 days. The recent transfer of high-value tokens, taking place nearly a year after the Terra-LUNA crisis, has sparked concerns regarding the security of such transfers.
After evading authorities for several months, Do Kwon, one of the co-founders of Terra, was recently apprehended in Montenegro. Meanwhile, South Korean prosecutors are continuing their investigation into the Terra-LUNA crisis and are also attempting to apprehend the other co-founder, Daniel Shin. The governments of both South Korea and the US are working to extradite Do Kwon.
The Price Reaction
Terra Classic (LUNC) along with Terra (LUNA) are now being developed by separate teams and have distinct communities. Terra is focused on collaborating with other blockchain companies and Dapps to work on various projects, while Terra Classic is dedicated to enhancing the chain’s utility through multiple developments.
In the last 24 hours, LUNA’s price has dropped by 8%, and it is currently trading at $0.957. Similarly, LUNC’s price has fallen by 6% in the past 24 hours, and it is now trading at $0.000084.