Did You Know A $20,000,000 Bet Killed LUNA & Created LUNC?

Added: 2026-05-09

[00:00:00]Hey, what's going on guys? Welcome back to the channel. Today we're going to be taking a look at the events that transpired almost four years ago and we're coming up on the anniversary of this blockchain itself. And for a lot of people, that begins on today, May 8th.

[00:00:16]But what they don't understand is this whole thing started almost a month earlier. And that's what I'm going to be doing in this video, giving you guys an accurate breakdown as to the timeline of events as they went by from March to the crash itself. And I think it's important for us to understand that the crash, regardless of how it happened, was actually initiated far earlier. And it was all boiled down to egos. Nothing else but egos. Before it even collapsed, people were warning about this on Twitter at the time. And weirdly enough, Twitter ended up documenting the entire thing in real time, giving us that ability to go back and actually look at stuff like this because before the crash, there was actually a massive public bet between some of crypto's biggest personalities at the time. And honestly, that bet has aged horribly.

[00:01:07]So, what exactly happened? Well, back in March 2022, as I mentioned, there was a trader called Algorod Trading, and they challenged personally the Luna supporters and basically said, "If Luna is so strong, bet on it." This wasn't a small bet by any means. It was for $1 million. But then a famous trader entered that conversation and he's known as GCR. And instead of just agreeing with the bet, he actually went in and raised the stakes. This is where it becomes insane because this is when Duke Kuan steps in personally to get involved in that bet. So now it wasn't just about money. It didn't matter that it was a million dollars on the line and that someone else had come in and raised it.

[00:01:49]This was now about egos, reputation, and pride. Nothing else. And it didn't matter who was going to get hurt in the process. The deal was simple. If Luna's price was higher one year later from the bet, Ducoin wins. And if it was lower, GCR wins. It was that simple. Crypto personality, a guy called Kobe, acted as escrow for this bet. So, it was all legitimate. GCR sent $10 million in USDC. Ducoin matched it with another $10 million. So, you've got $20 million publicly announced into this bet on Twitter, further solidifying this insanity. But even that wasn't enough for GCR. He actually tried convincing Du Kan to double his bet. Ducoin refused publicly. So GCR from what we can understand he just increased his own exposure by opening even larger positions against Luna. And this is where it gets absolutely insane. And why I said the crash itself was initiated far earlier than today. On May 7th, 2022 after all of his bets put in place, GCR comes out and he publicly reveals he's going to be shorting Luna. Less than 48 hours after that announcement, US at the time lost its peg and then the collapse officially began. But what you need to understand is Ducoin made all of this possible by introducing a bet which allowed GCR to go in and open leverage positions against the chain and then bring his entire fan base on board. So you tell me who really caused the crash.

[00:03:22]Honestly, if you're around during that time, you probably remember how insane those few days were. Just going to nip in here real quick, you guys. You keep asking me how I forked out $10,000 on a memecoin when the market's crashing. And honestly, one of the biggest things that is helping me right now is BGM Capital.

[00:03:38]It's basically like everything at the moment, AI powered. But this is an automated trading system that essentially does the hard work for you.

[00:03:45]So instead of us kind of like sitting on the charts all day stressing over the market, the AI is essentially doing all of the hard work. These are very risky and I've used a few of them in the past and I've lost money, but I've also gained more money than I've lost. I literally just deposit my crypto. I let the system run and every 24 hours or so I go to withdraw profit if there is any.

[00:04:05]Okay, so right here, this is my main balance from yesterday's automated trading session. I've earned around $9,900 in profit from this platform already. But what I'm going to do is show you how you make a withdrawal live and show you how fast this actually is.

[00:04:18]Right now I've got around $490 to withdraw, which isn't too bad. I'm going to enter the amount. I'm going to select my coin. As you can see, I'm actually using USDT BEP20. Make sure you get all of your settings done correctly. Let's enter the amount, which is $490. Hit confirm. And literally just a couple of minutes later, that payment has already come through. You can see the deposit right here in my wallet history as well that came through on Binance on my mobile device. That's what I like about this platform. Withdrawals are fast. I hate ones, and yeah, I've been part of them, where they essentially lock your funds up in some way, shape, or form.

[00:04:50]Something I'm starting to realize is that AI is going to be outperforming any human trader as the months and years go by. It doesn't trade on emotion. It doesn't panic sell because of a small market crash. And it can analyze a lot of data that we simply are unable to do, and it does it in seconds. Whenever I'm trying to use a platform like this, two rules of thumb, are they registered as a company somewhere? and invest as little as possible. If you're like me and you're tired of watching the charts all day and you just need a little break, these kind of things can be an absolute godsend. The links in the video description if you did want to use something like this, but go out, do your own research. I'm not a financial adviser. I'm not promoting this in any way, shape, or form. I'm just showing you guys how I make money. Be very careful. Like I said, do your own research. Now, let's get back to the video. On May 8th, the Luna Foundation Guard started desperately trying to defend US's PEG. That's why I said today is more or less the anniversary of the crash itself. They actually used Bitcoin reserves that they had and other assets to buy US supposedly and stabilize the system. That didn't work. So by May 9th, US was already breaking down fast. The panic's already set in. By the time we get to May 10th, things are just spiraling out of control, worse than they've ever been. The Luna Foundation Guard then deploys a further 33,000 bitcoins trying to just save the ecosystem. It weren't even about trying to save US at that point. It was just trying to save Luna and the overall chain. Now, at the time when they're deploying these 33,000 bitcoins, there was around a billion dollars worth of buying pressure on the chain itself. And even that failed at the 10th of May, USS collapsed to around 30. That's a 70% decrease. And Luna's already entered its death spiral. By May 13th, US was trading at 17 cents. People couldn't even get out. So, it wasn't just US that lost all of its value. As you know, Luna dropped by 99%. But things get crazier here. Even though you would think that this is obviously the top while all of the panic's happening, the crash is taking root. Things are spiraling out of control. Luna's in a death spiral. GCR had already hedged his position, which means if Luna somehow recovered, right, he's actually protected himself from any losses. Do you know how much that hedge cost him? $700. That's it. $700 hedge on a multi-million dollar position during one of crypto's biggest collapses.

[00:07:10]Meanwhile, Ducoin went from profit crypto superstar to an absolute nothing.

[00:07:15]Facing investigations in South Korea, facing investigations in New York, going on the run, whilst $18 billion was wiped out. And despite doing all of this, being on the run, he still tried to fork the original chain into what is now Luna 2.0. And it was absolutely insane because a lot of the supporters didn't even stay loyal after the collapse. They all just vanished. Even the people that were part of the original chain simply just believed him and went to Luna 2.0.

[00:07:45]And looking back now, that was the worst decision that they could have ever made.

[00:07:49]Now, the biggest problem with this entire thing, the crash and with the bet and all of the people working against it with shorts was Anchor Protocol. This was offering almost 20% yields on US, which sounds amazing, don't get me wrong. But those returns created massive sell pressure on the entire ecosystem.

[00:08:09]But during bull markets, nobody cared.

[00:08:11]People were just looking for gains whilst prices were simply or seemingly going up indefinitely. Kind of like what the stock market's been doing. But once the panic started, the algorithm behind US itself, it couldn't hold the peg anymore. And when the confidence disappeared, the entire system simply just collapsed in days. Honestly, Teruna has become one of the biggest lessons in crypto for anybody coming in that wants to build an algorithmic stable coin of any kind. But not just stable coins.

[00:08:40]There's so much more that really comes into this and the the hype, the leverage, the risk, and how things can really unravel when confidence disappears. Something that would be really cool is if Ducoin at some point does what CZ did and writes a book where we get his account of events, if you will. If you're like me and you're up to date with absolutely everything, you'll know during the coinage interviews that he said essentially they could figure out who caused the crash, but he's not interested in finding out who really caused the crash. But the evidence is quite clear. It's likely people that were heavily connected to GCR that got the news through him and it would have took a lot of people to work together in a coordinated fashion to bring down a system like that. So do understand that although Duke made the bet and although he made all of this possible, it's a mixture of many different things coming in to create this perfect storm if you will which then eventually obviously as many of you know became the largest crash in crypto history. There is a lot of conspiracies out there. There's a lot of weird information. And if you look at things like OM Mantra, which is another chain similar to ours that crashed in a very similar fashion, well, the majority of their leadership were also in flight.

[00:09:58]And I think JP Mullen had just landed.

[00:10:00]No. Yeah, JP Mullen had just landed. I'm looking in my inbox here. I've got a message from JP Mullen. I'll bring it up on the screen. Here you go. He had just landed. So essentially they caught them when they were all in flight. And this didn't just happen to TFL. This has happened to some other blockchain and some other leadership team in a very similar fashion. That's where we could go into conspiracies and tinfo hat stuff and we could make so much content around it. But I wanted to give you guys an accurate kind of timeline of these events as to really how it went down because like I said, it didn't start today. It really it started way way earlier way earlier as you've seen all the way back in March. Guys, happy 4th anniversary because we are basically there at this moment in time. The LUNC community in many aspects had already been born. And like I said, it wasn't about creating two chains at that point.

[00:10:54]It was more about a divide that was very existent at the time that there was one chain and another chain. And we were not going to be giving up Terra Luna Classic. But yeah, guys, stay safe, stay humble, stay aware, have a great weekend, and uh I'll catch you in the next