Renowned internet sleuth and noir crypto-detective ‘Coffeezilla’ has brought his impressive brand of investigation into the catastrophic downfall of LUNA.
With billions of dollars in value being wiped out overnight, the complete implosion of LUNA over a 24-hour period has sent waves through the internet.
Influencers like KSI have lost mind-blowing amounts of money, while a number of crypto bros have gone from laughing in the face of the poor to trying to defend their misery.
In a dark turn of affairs, the subreddit dedicated to LUNA and its followers has pinned a help hotline to the top of its sub for those in need.
Reacting to the latest developments, Coffeezilla took a deep dive in his most recent YouTube video titled: ‘How Luna Collapsed,‘ focusing heavily on the actions of Do Kwan, the founder of the TerraForm Labs, the crypto company behind LUNA.
The YouTuber starts his video by announcing “all it took was one market downturn to turn this golden token into digital toilet paper.” Continuing, he points it “In one week Luna has gone from eighty dollars a token, to less than one”. At the time of writing LUNA sits at 2/1000th of a cent per token.
After calling out how ‘predictable’ the crash was, Coffeezilla brings up points made in a previous video. Namely that LUNA was based on a Ponzi scheme, and that a collapse of this kind was “predictable.” So predictable that Do Kwan was baited on Twitter into taking a $10 million dollar bet that “LUNA will be lower price in 1 year.”
The video pulls apart tweets made by Do Kwan, claiming the founder incentivized the backlash against him by tweeting: “Billionaires in my following, go ahead and see what happens” as a taunt against his doubters.
Without the ability to directly blame the incredible demise of LUNA solely on Do Kwan’s shoulders, Coffeezilla explains: “It was this unique combination of arrogance, antagonism, and disregard for criticism that contributed either directly or indirectly to LUNA’s collapse.”
The video exposes more of the questionable history behind Do Kwan’s actions, before relating it back to the bigger picture of the billion-dollar bubble.
Acknowledging the real-world impact this will have, Coffeezilla continued: “While I hold very little sympathy for Do Kwan’s failure, I do feel bad for all the traders who got swept up in it. [Especially] the regular investors who don’t have millions to spare.’
Closing out the video, Coffeezilla suggested that “we can’t forget about the painful lessons things like LUNA can teach us.” Numbering off the advice “1. Don’t taunt internet billionaires. 2. Don’t build Ponzi schemes. 3. Beware Algorithmic stablecoins.”