Will Terra’s LUNA Top $88 This Time Next Year? A $1M Bet Says It Will

Crypto trader Sensei Algod has been so adamant about his bearish take on Terra’s native token, LUNA, that he decided to put his $1 million where his mouth is.

“Who wants to take a $1,000,000 bet that LUNA will be lower price [sic] in 1 year than now?” he tweeted yesterday.

“Cool, I’m in,” replied CEO and founder of Terraform Labs, the firm behind Terra, Do Kwon, betting $1 million that the price of Terra’s LUNA token will be higher than $88 on March 14 next year.

The duo agreed to appoint Cobie, a co-host of the crypto podcast UpOnly, as their escrow agent. They have each transferred $1 million in Tether’s stablecoin USDT to an Ethereum address, which Etherscan has now labeled as “Cobie: LUNA Bet Escrow.”

Luna’s trading for $92.85 a pop, as of this writing, according to data from CoinMarketCap. It’s the seventh-largest cryptocurrency, boasting a market capitalization of $34.5 billion.

Despite the token’s recent bullish activity, however, Sensei Algod believes the price action doesn’t reflect his major concerns with the project.

The Big Short: Terra’s LUNA

Terra’s native dollar-pegged stablecoin, UST, maintains its stability through a swap mechanism, where traders sell 1 UST for $1 worth of LUNA at any time.

Whenever UST drops below its $1…