In a shocking development, Montenegro’s Prime Minister, Milojko Spajic, has been revealed as an early investor in Terraform Labs’ LUNA coin, the cryptocurrency project at the center of a multi-billion dollar collapse last year. This revelation comes as LUNA and its successor, LUNC, experience significant price drops amidst a large-scale token burn.
The news broke after a court document filed in the US emerged, identifying Spajic as the 16th investor in Terraform Labs in 2018. He reportedly purchased 750,000 LUNA coins at a mere $0.10 each, an investment that would have ballooned to a staggering $90 million at its peak in 2022. Whether Spajic held onto these tokens remains unclear.
This revelation has sparked outrage, with the opposition party demanding Spajic’s resignation. While Spajic invested before becoming Prime Minister, his background in global banking raises concerns about potential conflicts of interest. Prior to entering politics, he worked for institutions like Citibank and Goldman Sachs, even holding a partnership with a Singaporean venture capital firm.
Adding fuel to the fire is the ongoing turmoil within the Terra ecosystem. Major token burns exceeding 6.5 billion LUNC in the past 24 hours have caused anxiety within the community. This burn follows Terraform Labs CEO Chris Amani’s recent agreement to burn LUNC and USTC tokens held by the firm. The mass sell-off by large wallets, coupled with these burns, has significantly reduced the circulating supply of LUNC.
The unprecedented activity has led to a surge in trading volume, exceeding 600% within the last day. This indicates heightened participation from both investors and traders. However, the consequence is a dramatic price drop for both LUNA and LUNC. LUNA has fallen by over 4%, while LUNC has plummeted a staggering 19%, now trading at a mere $0.00007486.
Despite the current turmoil, some members of the Terra Luna Classic community remain optimistic about LUNC’s future, pointing towards ongoing development efforts like the Tax2Gas app. However, the Prime Minister’s involvement and the ongoing price drops cast a long shadow over the project’s future. Only time will tell if LUNA and LUNC can recover from this latest episode.