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UST's Do Kwon Was Behind Earlier Failed Stablecoin, Ex-Terra Colleagues Say (coindesk.com) 29

Posted by msmash from the closer-look dept.
Do Kwon, the CEO of Terra creator Terraform Labs, was one of the pseudonymous co-founders behind the failed algorithmic stablecoin Basis Cash, CoinDesk reported Wednesday. From the report: Basis Cash (BAC) was a closely watched revival in decentralized finance (DeFi) circles when it launched on Ethereum in late 2020, just before the launch of terraUSD (UST), Terra's flagship stablecoin. Like UST, BAC sought to maintain a $1 peg through code, not collateral. But it failed: The token of this long-abandoned project never achieved its target of dollar parity, sank below $1 in early 2021 and was trading well below 1 cent on Wednesday.
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UST's Do Kwon Was Behind Earlier Failed Stablecoin, Ex-Terra Colleagues Say More

UST's Do Kwon Was Behind Earlier Failed Stablecoin, Ex-Terra Colleagues Say

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  • Good news (Score:4)

    by muh_freeze_peach ( 9622152 ) on Wednesday May 11, 2022 @11:53AM (#62523280)
    I never see good news regarding cryptocurrencies.

  • Knock it off already! (Score:5, Insightful)

    by hackertourist ( 2202674 ) on Wednesday May 11, 2022 @11:54AM (#62523286)

    Do we really have to have 4 cryptocurrency stories on the front page? We get it, the rats are scrambling.

    • Re: (Score:1, Interesting)

      by Train0987 ( 1059246 )

      ./ shares responsibility for pumping this scam garbage (crypto) for many years, it's only fitting that they cover the result when it all blows up. If you think this looks bad imagine if they just ignored it and all the people's lives they helped ruin.

    • > Do we really have to have 4 cryptocurrency stories on the front page? We get it, the rats are scrambling.

      You should have seen all the Microsoft stories here in the 90's!

    • Re: (Score:2)

      by tlhIngan ( 30335 )

      Do we really have to have 4 cryptocurrency stories on the front page? We get it, the rats are scrambling.

      Of course, you need the PR to pump up crypto - they're losing value and we need more press releases to get the fools to invest again. Greater Fool Theory of spec- err, investing you know.

      I think we'll have to have at least another dozen news articles before the collapse will start to reverse.

  • I'm off to get a bowl of Bun Bo Hue. Guess what I'm using to pay for it.

  • How to you stabilize without assets? (Score:3)

    by smap77 ( 1022907 ) on Wednesday May 11, 2022 @12:01PM (#62523316)

    If you take away the rhetoric by the founders, how is it that any traded currency is supposed keep its value (pegged or otherwise) without backup assets?

    How is unbacked crypto going to suffer anything different than the currency poundings that happened in the run-up to the Euro peg?

    • Re: (Score:2)

      by gweihir ( 88907 )

      You see, they have this magic called an "algorithm"! It can mangle reality and create something from nothing! Or so these morons thought...

  • 4 of the top articles at the moment on the feed are about crypto and how people are loosing their shirt.
    Not very inviting to join in .. All we see is failures and bankruptcies. The only ones who made real money in this were early adopters , rest of them is suckers that buy the coins dreaming of riches without having to lift their sorry butts off their chairs.
    I truly hope they loose everything. Teach them a life lesson.

    • about 45 percent of bitcoin holders are now in the red, and that is rising even as I type.

      UST's are third "stablecoin" to hit the shitter. Pegged to nothing now.

      • about 45 percent of bitcoin holders are now in the red, and that is rising even as I type.

        UST's are third "stablecoin" to hit the shitter. Pegged to nothing now.

        Every time I see "Stablecoin" I laugh.

    • Re: (Score:2)

      by gweihir ( 88907 )

      Well, stupid people alternate between feeling smarter than everybody else and losing their shit. Not even that entertaining. Lets have that fatal and final crash already and let the bad idea die, so we can hopefully do without these demented "pump" attempts after that.

  • He was working with them all along! (Score:3)

    by Krishnoid ( 984597 ) on Wednesday May 11, 2022 @12:08PM (#62523354) Journal

    UST's Do Kwon Was Behind Earlier Failed Stablecoin, Ex-Terra Colleagues Say

    I'm not saying it's aliens ... but it's probably aliens. Or maybe Terrans in exile. The term is a little ambiguous.

  • If, at first, your grift/cult/insurrection does not succeed- try, try again!

  • "We wanted to just it out" (Score:5, Informative)

    by Pollux ( 102520 ) <speter@[ ]ata.net.eg ['ted' in gap]> on Wednesday May 11, 2022 @01:27PM (#62523642) Journal

    Straight from the horse's mouth: “Basis Cash wasn’t tested at the moment, and we weren’t even sure” it would work, Kang said. Kwon “wanted to just test it out. He said that this was a pilot project for doing that.”

    Let's run this quote by the investors who put $133 million into the project [coindesk.com]. I'm sure they all were all told and knew they were just investing in some cryptocoin experimental pilot project.

    Or here's another theory: this jerk sweet-talks investors into handing over a crap-ton of cash into a 21st-century-crypto-equivalent of a get-rich-quick pyramid scheme and cashed out big before the crash. Only when Oz is revealed for who he really is does he try to save face by saying it was never a serious plan in the first place.

  • They were always considered dangerous in the crypto world because its an algorithmic stable coin that was new and had to prove itself. Some people got greedy for the high staking rewards and they lost.

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