Despite declining to $ 50 billion, crypto hothead revives Do Kwon Terra machine

He admitted that he liked watching cryptocurrencies and companies “die”. Karma seemed to have hit him in the face with the collapse of his Terra blockchain. Do Kwon’s megalomania, however, appears less damaged than its users’ finances. The co-founder even convinced the community to validate his much-maligned rescue plan.

Fake it until you can handle it. The aphorism about the fruitful deception often attributed to startups seems to be tailored to Do Kwon. This 30-year-old graduate of Stanford, the prestigious University of Silicon Valley, quickly transitioned to giants Apple and Microsoft, had built a reputation 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, was launched in January 2018.

It must be acknowledged that its ecosystem had quickly followed its fine words, Terra rose to second position in the world of decentralized finance (DeFi) blockchains. Its algorithmic stablecoin, UST, was until recently in third place on the international podium for so-called stable digital currencies. And its Siamese token, LUNA, reached a historic high in April with nearly $ 120 per share. unit.

Was the LUNA / UST eclipse recorded in the stars?

The rest is known, almost already written into the history books. The combined fall of UST and LUNA has resulted in the lower Terra becoming the crypto Titanic. 50 billion of market values ​​disappeared in the “spiral of death”, this economic bleeding that many analysts had predicted for years. An evil inherent in the famous algorithmic stack coins based on a paradoxically unstable mix of code and financial technique. However, Do Kwon had spent months making sure that a liquidity crisis with its cryptocurrencies was unlikely given all the activity that involved them.

A success that above all benefited the “master of stablecoins”, as Kwon always presents himself on Twitter. His fortune, closely linked to Terra, was swollen visibly, to the point where he landed on the radar of the American watchdog. A legal battle is already taking place right now in the courts of New York to avoid having to honor a lawsuit. It remains to be seen how its legacy will survive and whether Terra’s cryptos are definitely dead.

Do Kwon has 1 million Twitter followers. Source: staldkwon

“Network Rebirth”really ?

Terra 2.0. This is the solution, the recovery plan, that Do Kwon and its developers envision to turn the page on the UST crash. It’s basically about creating a new blockchain without the offensive algorithmic stablecoin, Terra reportedly worth more than UST, insisted its co-founder. The old channel would be renamed Terra Classic, and the new one would become a “fully community-owned” network. »

In theory, Terra Team’s remaining cash assets should be reallocated to “smaller” investors based on what they had in the old chain and their seniority.

Let Terra die urged some critical observers, in ironic reference to the media hype from Do Kwon, who 8 days before the collapse predicted the death of 95% of cryptocurrencies. ” But it’s also entertaining to watch companies die. “, He had found it appropriate to add. Letting the writers of a failing network coldly relaunch the same infernal machine with a few cosmetic changes seems regrettable. Moreover, with the money from gullible victims, which “ made the mistake of relying on Kwon in the first place “. It must be acknowledged that the recovery option is based on the decoupling of LUNA and 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 mocked Changpeng Zhaothe head of the world’s largest crypto exchange, Binance.

In any case, Do Kwon’s proposal was put to the online vote. At the time of writing these lines, the day before the voting deadline, about 284.5 million votes had been approved. The balance sheet is in favor of the plan, at 65.8%. There are more who do not vote (21.5%) than a firm opposition with a veto (12.4%). The market has hardly moved. UST is currently trading at $ 0.064 per share. unit and no longer weighs ” to $ 696 million. While its alter ego, LUNA, which drops to $ 0.00016 for $ 1 billion in market value, is branded as active “extremely volatile, requiring the greatest precautions. »

terra suggestions
Source: Current proposals

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