After climbing to $11. 33 per unit seven days ago on May 30, Terra’s new LUNA 2.0 token has lost more than 56% in value against the U.S. dollar. Many Terra-based decentralized finance projects (defi) are now moving to the Phoenix-1 blockchain amid the market performance. Fatman, a whistleblower, continues to accuse Terraform Labs and Do Kwon (TFL) of manipulative tactics. He claims that Do Kwon and TFL have access to shadow wallets with . Fatman alleges Kwon and TFL have access to shadow wallets with 42 million new LUNA tokens.

LUNA 2.0 Token Sheds 56% Since Last Week’s Price High, Terra Defi Apps Join the New Phoenix Blockchain

Last week, the price of Terra’s LUNA 2.0 token was in better standings as the value crept up to $11. 33 per unit last Monday. Since then, however, LUNA is down 56. 92% since the high on May 30, 2022. Today, 24-hour price range statistics indicate that LUNA has ranged between $4. 84 to $5. 46 per coin.

Out of more than 13,400+ cryptocurrencies in existence today, LUNA’s market capitalization is ranked 2,806 and it has seen $380 million in global trade volume during the last 24 hours. The top five trading pairs with LUNA on June 6, 2022, includes USDT, USD, EUR, USDC, and ETH respectively.

Amid the market performance during the last week, a number of defi applications that were once very prominent apps on Terra are prepping to re-join or have already joined the new 2.0 system. This includes Terra defi apps like Valkerie Protocol, Leap Wallet, and Astroport.

The Terra Twitter page recently explained that the Terra Bridge Version 2 is now live and with the latest version, “users can transfer assets to [and] from Terra 2.0, Ethereum, Osmosis, Secret, Cosmos, [and] Juno.” The Terraform Labs co-founder Do Kwon tweeted about the decentralized exchange (dex) Phoenix and the staking derivative application Stader launching on Terra 2.0.

Terra Whistleblower Accuses Do Kwon and Terraform Labs of Owning Shadow Wallets

While Terra community members rebuild the obliterated blockchain ecosystem, the whistleblower Fatman continues to accuse Terraform Labs and Do Kwon of manipulation. Fatman stated that Terraform Labs was allegedly using shadow wallets. This is despite the fact that Do Kwon and Terraform Labs promised to blacklist specific wallets such as the Luna Foundation Guard’s or TFL’s wallet from the LUNA2.0 airdrop.

“Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making Terra 2 ‘community-owned,'” Fatman tweeted. This is a complete lie, and nobody seems to be discussing it. In fact, TFL owns 42M LUNA, worth over $200m, and they’re lying through their teeth.”

Fatman also disclosed five wallets he suspects are shadow wallets which include 1, 2, 3, 4, and 5 Terra-based addresses. The five wallets hold 42. 81 million LUNA 2.0 tokens and Fatman claims there are many other wallets. Three of the five wallets have moved LUNA, while the remaining two remain inactive.

“[Do Kwon] used shadow wallet to approve his own proposal through governance manipulation (TFL does not have to vote). He then told everyone that it would be a community owned chain and gave himself a nine figure score. These are just the verified wallets – there are many others,” the whistleblower wrote.

Fatman, however, stated in another Twitter thread that Terra 2.0 could be a community-owned cryptocurrency. Fatman believes that Terraform Labs (TFL), is not going to allow this idea to come to fruition.

“Terra 2 may succeed as a truly community-owned chain, but it appears TFL is hell-bent on making sure this doesn’t happen,” Fatman said. I hope things improve, but builders report that the chat is chaotic and there is a lot pent-up anger towards [Do Kwon].”

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What do you think about LUNA’s market performance this week and the accusations tied to Do Kwon, TFL and alleged shadow wallets? Please comment below to let us know your thoughts on this topic.

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