He admitted that he enjoyed watching cryptocurrencies and companies “die.” Karma appears to have hit his face with the collapse of his Terra blockchain. However, Do Kwon’s paranoia appears less detrimental to the finances of its users. The co-founder even persuaded the community to ratify the bailout, which he fiercely criticized.
Lie until you do it. The aphorism about the fruitful charlatan often attributed to beginners seems to have been specifically designed for Do Kwon. The 30-year-old graduate of Stanford, the most prestigious university in Silicon Valley, quickly passed on to giants Apple and Microsoft, and he’s built a reputation on promises: to offer the world the least volatile, most user-friendly cryptocurrency. Prophecy attracted 40 million users when it launched Terraform Labs in January 2018.
We must realize that its ecosystem has quickly followed its great words, with Terra rising to the second position in the world of decentralized finance (DeFi) blockchains. Its algorithmic stablecoin, UST, has until recently been installed in third place on the international platform of so-called digital stablecoins. The Siamese currency LUNA hit an all-time high in April at $120 per unit.
Was the LUNA/UST eclipse recorded in the stars?
The rest is known, almost already entered the history books. The paired fall of UST and LUNA resulted in the lower Terra becoming the Titanic of crypto. 50 billion disappeared from market capitalization in a “death spiral,” the financial hemorrhage that many analysts had been predicting for years. An inherent evil in the famous algorithmic stablecoin based on a paradoxically unstable combination of code and financial engineering. However, Do Kwon has spent months ensuring that a liquidity crunch is not likely with his cryptocurrencies given all the activity involved.
Success benefited above all as the “master of stablecoins”, as Kwon always introduces himself on Twitter. His fortune, closely related to Terra, had clearly ballooned, to the point of landing on the radars of the US stock market watchdog. There is a legal struggle already going on in New York courts now to avoid having to honor a subpoena. It remains to be seen how its legacy will survive and whether Terra cipher is definitely dead.
“Revive the network”truly ?
Terra 2.0. This is the solution, the recovery plan envisioned by Do Kwon and its developers to turn the page on the collapse of the underground reservoirs. In essence, it is about creating a new blockchain, without the offending stable algorithm, Terra is claimed to be worth more than UST, Its co-founder insisted. The old channel will be renamed Terra Classic and the new channel will become an “entirely community owned” network. »
In theory, the Terra team’s remaining cash assets should be reallocated to “smaller” investors based on what they have held in the old chain and how long they have been in it.
“ Let Tera die Some critical observers urged, ironically referring to the media hype of Do Kwon who predicted, 8 days before the crash, that 95% of cryptocurrencies would die. ” But it’s also fun watching companies die. “, he saw fit to add. Allowing the authors of Failed Network to coldly restart the same infernal machine with some cosmetic tweaks seems unfortunate. Moreover, with the money of gullible victims who” He made the mistake of trusting Kwon in the first place It must be recognized that the recovery alternative relies on the separation of LUNA and UST while the latter was the cornerstone of the Terra ecosystem.
“ will not work. The new blockchain will have no value. It’s magical thinking “,” Even Changpeng Zhao sneeredChairman of the world’s largest cryptocurrency exchange, Binance.
Do Kwon’s proposal was submitted in any case to an online referendum. At the time of this writing, the day before the final voting deadline, about 284.5 million votes have been validated. The scale tilts in favor of the plan at 65.8%. There was more abstention (21.5%) than firm opposition with a veto (12.4%). The market is barely moving. Floor cabinets are currently trading at $0.064 per unit and no longer weigh” that 696 million dollars. While the other ego LUNA, which fell to $0.00016 for $1 billion in market capitalization, was stamped as active “Very volatile requires the greatest precautions. »