Despite plummeting to 50 billion, cryptocurrency hothead Do Kwon is reviving the Earth machine

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

Pretend until you make it. The aphorism of the fertile imposture that is often attributed to startuppers seems tailor-made for Do Kwon. This thirty-year-old graduate of Stanford, the prestigious university in Silicon Valley, who passed in a flash to the giants Apple and Microsoft, had built a reputation on his promise: 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 should be acknowledged that its ecosystem quickly followed its fine words, Earth climbing to second place in the world of decentralized finance (DeFi) blockchains. Its algorithmic stablecoin, the UST, was enthroned until recently in third place 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 entered in the history books. The coupled fall of UST and LUNA has resulted in the Earth fund becoming the Titanic of cryptocurrencies. 50 billion in market capitalization has 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 spent months ensuring that a liquidity crisis with his cryptocurrencies was unlikely given all the activity that involved them.

A success that has especially benefited the “stablecoin master”, as Kwon always presents himself on Twitter. His fortune closely linked to Earth had grown visibly, to the point of ending up on the watchdog’s radar of the American stock market. Right now a legal brawl is already underway in the New York courts to avoid having to honor a subpoena. It remains to be seen how his heritage will survive and whether Terra’s cryptos are permanently dead.

Do Kwon has 1 million Twitter followers. Source: stablekwon

“Rebirth of the network”truly ?

Earth 2.0. This is the solution, the recovery plan devised by Do Kwon and his developers to turn the page on the UST crash. In essence, it’s about creating a new blockchain, without the offensive algorithmic stablecoin, Earth presumably worth more than UST, its co-founder insisted. 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 liquid assets should be redistributed to “smaller” investors based on what they held in the old chain and how long they have been.

Let Earth die urged some critical observers, in ironic reference to the media hype of Do Kwon which, 8 days before the collapse, predicted the death of 95% of cryptocurrencies. ” But it’s also fun to see companies die. “, He thought it appropriate to add. Letting the authors of a failing network coldly relaunch the same infernal machine with a few aesthetic alterations seems deplorable. Moreover, with the money of the gullible victims who “ he made the mistake of trusting Kwon in the first place “It must be recognized that the recovery alternative is based on the decoupling of LUNA and UST while the latter was the fulcrum of the Earth ecosystem.

That will not work. The new blockchain will have no value. It is a magical thought “, even mocked Changpeng Zhaothe head of the largest cryptocurrency exchange in the world, Binance.

However, Do Kwon’s proposal was submitted to an online referendum. At the time of writing these lines, the day before the voting deadline, about 284.5 million votes have been validated. The balance is in favor of the plan, at 65.8%. There are more abstentions (21.5%) than vetoed opposition (12.4%). The market has barely moved. The FSO is currently trading at $ 0.064 per unit and weighs no more ” That $ 696 million. While his alter ego LUNA, which drops to $ 0.00016 per $ 1 billion market cap, is marked as active “Extremely volatile which requires the utmost precaution.

land proposal
Source: Current proposal

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