Terra's Partnership with Washington Nationals Raises Eyebrows
Luisa Crawford Apr 02, 2023 10:32
Terra, the cryptocurrency ecosystem that collapsed in May 2022, made a prominent appearance at Nationals Park during the Washington Nationals' home opener on March 30. Despite Terra's collapse, a partnership between the company and the baseball team had been in effect since February 2022, with the Terra community committing $38.2 million over five years to secure the deal. Terra's founder, Do Kwon, is currently in police custody in Montenegro and is reportedly facing harsh conditions in the penal system.
Baseball fans attending the opening day of the Major League Baseball (MLB) season at Nationals Park in Washington D.C. were greeted with an unexpected sight – the prominent display of Terra, the cryptocurrency ecosystem that collapsed in May 2022. A Twitter user who attended The Washington Nationals’ home opener against the Atlanta Braves on March 30 shared an image of Terra prominently displayed on a banner with the slogan, “a decentralized economy needs decentralized money.”
While some attendees were intrigued by the appearance of Terra, others were left questioning the wisdom of the partnership between Terra and the Washington Nationals. One Twitter user noted that the Terra Club, a VIP pre-game venue experience, was located behind home plate at Nationals Park, with "a big sign in left center" promoting Terra.
The partnership between Terra and the Washington Nationals had been in effect since February 2022, just months before Terra's collapse. The Terra community had committed $38.2 million in TerraUSD (UST) over five years to secure the deal. Terra's founder, Do Kwon, proposed the partnership through the community’s governance platform.
However, the timing of the collapse of Terra has left some investors in the cryptocurrency wondering if they will ever see a return on their investment. In May 2022, Terra's price plummeted, wiping out billions of dollars in market value. The collapse was attributed to a combination of factors, including a lack of transparency, poor risk management, and overreliance on leverage.
Adding to the uncertainty surrounding Terra is the arrest of its founder, Do Kwon. Kwon is currently in police custody in Montenegro and is reportedly facing harsh conditions in the penal system. According to an unnamed criminal defense lawyer cited in a March 29 Protos report, the conditions at Montenegro's jails and prisons "haven't changed" from those described in a 2020 human rights report by the United States State Department. The report cited a 2015 case in which prison officers were convicted of torturing and "inflicting grievous bodily harm" on 11 inmates.
Despite the collapse of Terra and the arrest of its founder, the partnership with the Washington Nationals remains in effect. The prominent display of Terra at Nationals Park raises questions about the wisdom of partnering with a cryptocurrency ecosystem that has experienced such a dramatic collapse. It also highlights the potential risks associated with investing in cryptocurrencies, which remain largely unregulated and subject to extreme volatility.
In conclusion, the appearance of Terra at Nationals Park during the Washington Nationals' home opener on March 30 has drawn attention to the cryptocurrency ecosystem's collapse and its partnership with the baseball team. While some attendees were intrigued by Terra's message of "decentralized money," others were left questioning the wisdom of partnering with a company that has experienced such a dramatic collapse. The arrest of Terra's founder, Do Kwon, and the potential risks associated with investing in cryptocurrencies underscore the need for caution when investing in these emerging technologies.
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