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Terraform Labs Whales Dumped LUNA on Retail Before UST’s Depeg

Anders Helseth, a Senior Analyst at Arcane Research, filed an entry on May thirtieth, claiming that Terraform Labs dumped LUNA tokens on retail customers through the collapse of UST.

If the Terra Ecysostem was a sinking cruise ship, the captain and distinguished company fled in superyachts, leaving most passengers behind with out lifeboats. – Opens the publish.

  • Helseth tracks down the failings of the Terra Classic Protocol again to its genesis, claiming that “no block rewards and a highly concentrated LUNA supply gave all power to the early holders.”
  • Arcane Research shared a pie chart of LUNA’s distribution as of October third, 2020:
Source: Arcane Research


  • The analyst claims that he has analyzed worth flows within the Terra Ecosystem and has accounted for transactions as much as May fifth (proper earlier than the crash) to keep away from obscurity.

The evaluation reveals that units of John Doe wallets interacting carefully in clusters have huge internet outflows from the Terra ecysostem to bridges and centralized exchanges.

  • He claims that there’s a typical denominator amongst these clusters – “one or more wallets in the cluster received significant transfers from Terraform Labs’ wallets.”
  • From October 2020 to May fifth, 2022, stated clusters comprise internet outflows of over $6 billion by way of bridges and exchanges.
  • On the opposite hand, “all the other hundreds of thousands of wallets have a net inflow of $6.5 billion.”
  • What is extra, he additionally argues that the clusters deposited massive quantities of LUNA to exchanges when their worth was nonetheless comparatively low, making outflows “undervalued relative to inflows of LUNA.”
  • The report additionally particulars that the algorithm behind UST allowed these LUNA whales to mint massive quantities of UST and profit from the 20% yield on Anchor protocol.
  • That yield was what created the large demand for UST, offering the mandatory exit liquidity for the clusters – argues the analysis.

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