He admitted that he enjoyed watching cryptocurrencies and businesses “die”. Karma appeared to have been punched in the face with the collapse of his Terra blockchain. However, Do Kwon’s megalomania turns out to be less damaged than its users’ finances. The co-founder even convinced the community to validate his much-maligned rescue plan.
Pretend till you make it† The aphorism of the prolific deception often attributed to startups seems tailor-made for Do Kwon. This 30-year-old graduate of Stanford, the prestigious university of Silicon Valley, moved in a flash to the giants Apple and Microsoft, who had built a reputation based on promises: to offer the world the least volatile and most easily usable cryptocurrency. Prophecy had attracted 40 million users when his company, Terraform Labs, launched in January 2018.
It must be recognized that the ecosystem quickly followed his fine words, Terra rose to the second position in the world of decentralized financial (DeFi) blockchains. Its algorithmic stablecoin, the UST, was until recently ranked third on the international podium of so-called stable digital currencies. And its Siamese token, the LUNA, hit an all-time high in April at nearly $120 per unit.
Was the LUNA/UST eclipse recorded in the stars?
The rest is known, almost already in the history books. The linked fall of UST and LUNA has resulted in the lower Terra becoming the Titanic of crypto. 50 billion in market cap disappeared in the spiral of death, this financial hemorrhage that many analysts had predicted for years. An evil inherent in the famous algorithmic stablecoins, based on a paradoxically unstable mix of code and financial engineering. However, Do Kwon had taken months to ensure that a liquidity crisis with its cryptocurrencies was unlikely given all the activity they were involved in.
A success that mainly benefited the “master of stablecoins”, as Kwon always presents himself on Twitter. His fortune closely associated with Terra had visibly grown to the point that it landed on the US stock market watchdog’s radars. A legal battle is already underway in the New York courts to prevent a subpoena from being honored. It remains to be seen how his heritage will survive and whether Terra’s cryptos are definitely dead.
“Network Rebirth”real ?
Terra 2.0. Here’s the solution, the recovery plan devised by Do Kwon and its developers to turn the page about the UST crash. Essentially, it’s about creating a new blockchain, without the offending algorithmic stablecoin, Terra reportedly worth more than UST, insisted that his co-founder† The old channel would be renamed Terra Classic and the new one would become a wholly community owned network. †
In theory, the Terra team’s remaining cash assets should be redistributed to “smaller” investors based on what they held in the old chain and their seniority.
† Let Terra die urged some critical observers, in ironic reference to the media hype of Do Kwon predicting the death of 95% of cryptocurrencies 8 days before the collapse. † But it’s also entertaining to watch companies die. ‘ he had done well to add. It seems deplorable to let the authors of a failing network cold-bloodedly reboot the same infernal machine with a few cosmetic tweaks. Moreover, with the money of gullible victims who “ made the mistake of relying on Kwon in the first place It must be recognized that the recovery alternative is based on the decoupling of the LUNA and the UST, while the latter was the center of the Terra ecosystem.
† It will not work. The new blockchain will have no value. It’s magical thinking † even taunted Changpeng Zhaothe boss of the world’s largest crypto exchange, Binance.
In any case, Do Kwon’s proposal has been submitted to the online referendum. At the time of writing these rules, the day before the voting deadline, some 284.5 million votes have been validated. The balance is tipping in favor of the plan, at 65.8%. There are more abstentions (21.5%) than strong opposition with a veto (12.4%). The market is hardly moved. The UST is currently trading at $0.064 per unit and is no longer weighing” Which $696 million. While its alter ego the LUNA, which drops to $0.00016 for $1 billion in market cap, is labeled as an asset “extremely volatile requiring the utmost precaution. †