LUNA 2.0 token loses 56% of its value since last week, whistleblower accuses Terraform Labs of...

After Terra's new LUNA 2.0 token soared to $11.33 per unit seven days ago on May 30, it has now lost more than 56% of its value against the dollar. Amid the market performance, a number of previous decentralized finance (defi) projects based on  Terra have migrated to the new Phoenix-1 blockchain.

In addition to defi projects rejoining the Terra ecosystem, a whistleblower known as Fatman continues to accuse Terraform Labs (TFL) and Do Kwon of manipulative tactics such as allegedly lying about making LUNA 2.0 community-owned. Fatman claims that Kwon and TFL have access to shadow wallets with 42 million new LUNA tokens. LUNA 2.0 token loses 56% of its value since last week, Terra Defi applications join new Phoenix blockchain Last week, the price of Terra's LUNA 2.0 token was in a better position as its value rose to $11.33 per unit last Monday.

Since then, the LUNA token has fallen 56.92% from the high on May 30, 2022. Today, 24-hour price range statistics indicate that the value of LUNA ranged between $4.84 and $5.46 per coin. Out of over 13,400 cryptocurrencies in existence today, LUNA ranks 2,806 in terms of market cap and saw $380 million in global trade volume in the past 24 hours.

The top five pairs to trade with LUNA on June 6, 2022 are (USDT, USD, EUR, USDC, and ETH), respectively. Amid the market performance over the past week, a number of defi apps that were once very prominent apps on Terra are preparing to rejoin or have already joined the new 2.0 system. This includes Terra defi apps like Valkerie Protocol, Leap Wallet, and Astroport.

Terra's Twitter page recently explained that version 2 of Terra Bridge is now live and with the latest version, “Users can move assets from (and) to Terra 2.0, Ethereum, Osmosis, Secret, Cosmos, and Juno.” Terraform Labs co-founder Do Kwon tweeted about decentralized exchange (dex) Phoenix and derivative app Stader being launched on Terra 2.0. Whistleblowers accuse Do Kwon and Terraform Labs of owning shadow wallets While members of the Terra community rebuild the obliterated blockchain ecosystem, whistleblower Fatman continues to accuse Terraform Labs and Do Kwon of manipulation.

On June 6, Fatman said that Terraform Labs and Do Kwon allegedly had shadow wallets, though the team promised to blacklist specific wallets like Luna Foundation Guard's and TFL's from  LUNA 2.0. “Do Kwon has mentioned several times that TFL does not have any new LUNA tokens, making Terra 2 community owned,” Fatman tweeted.

"This is an outright lie that no one seems to be talking about. In fact, TFL owns 42 million Luna tokens, worth over $200 million." Fatman also revealed five suspected shadow wallets including 1, 2, 3, 4, and 5 Tera-based addresses.

The five wallets contain 42.81 million LUNA 2.0 tokens and Fatman claims there are many more. There are three wallets transferred out of the five LUNA wallets while the last two wallets remain inactive. “Do Kwon used his shadow wallet to approve *his own proposal* by manipulating governance (TFL is not supposed to vote), told everyone it would be a community-owned chain, and then gave himself a nine-figure score,” the whistleblower wrote.

“And these are just the verified wallets – there are many others.” However, in another Twitter thread, Fatman explained that there is a possibility of Terra 2.0 becoming a community-owned blockchain. But Fatman believes that Terraform Labs (TFL) is not allowing this concept to come to fruition.

“Terra 2 may succeed as a community-owned chain, but TFL seems intent on making sure that doesn't happen,” Fatman explained. “I hope things will change, but many construction companies have reported that the chat is in complete chaos and there is a lot of pent-up resentment towards (Do Kwon).”