A South Korean court on Wednesday issued an arrest warrant for Do Kwon, founder of blockchain platform Terraform Labs and creator of two cryptocurrencies Luna and TerraUSD.
Investors accuse Kwon of committing trade scams that have become two of the biggest disasters in the history of young cryptocurrencies.
TerraUSD was a real heartache, a “stable coin” that was considered one of the top ten cryptocurrencies in the world until its collapse in May. Stable coins are cryptocurrencies whose value is pegged to the value of another asset. TerraUSD, as the name suggests, is pegged to the US dollar.
Luna acted as a kind of buffer for TerraUSD – system automated converted If the value of TerraUSD drops too low, TerraUSD coins are turned into Luna tokens, or vice versa if the value of Luna falls too low in US dollars. The idea is that reducing the number of TerraUSD coins in circulation by automatically converting them to Luna restores the value of TerraUSD.
In other words, Do Kwon is an outspoken supporter of his system. The 31-year-old crypto-educated Stanford designer has always been a presence on social media, alluding to the supposedly invincible stability of his creation with his @stablekwon Twitter account.
Kwon has spent a lot of time promoting his system, praising the virtues of cryptocurrencies in general, retweeting his fans and dismissing his critics. Its followers like to call themselves “LUNAtics” after the other cryptocurrency.
Decentralized Finance and Decentralized Money Protest State-sponsored Violence against Financial Sovereignty
Volatility is the price believers pay to achieve sovereignty.
Destruction should not invalidate these beliefs.
— DoKwon (@stablekwon) 18 June 2022
Kwon’s self-correcting system did not anticipate what would happen if buyers completely escaped crypto by dumping large amounts of both TerraUSD and Luna at the same time. When did it started? event In May, an algorithmic hocus pocus that allegedly tied the Terra system to the value of the US dollar stopped working.
The once trusted Terra system – a cryptocurrency where a dollar is always worth a dollar – collapsed in a cloud of dust, triggering a financial contagion that crashed banks, eliminated hedge funds, wiped out countless investors’ savings and several other cryptocurrencies. . for good measure.
Do Kwon’s once chaotic social media accounts have gone very quiet. there are suicide lines melody for boring speculators.
The global consequences of the Terra eruption are: Vote over $42 billion. Kwon tried to stop the damage by launching “Luna 2.0”, a modified cryptocurrency, but the trick didn’t work as some market watchers suspected that Kwon was secretly manipulating Luna 2.0 to make it seem more valuable than it really was.
Angry investors questioned whether Terra was a scam all along – a “Ponzi scheme,” as Lou Kerner of blockchain venture capital firm Coinvestors put it. aforementioned in May.
Kerner believes the system only works as long as investors continue to pump non-cryptocurrency into the system. Terra’s worth is not tied to anything. As long as investors continue to buy the coins, they look valuable and anyone who holds them is considered wealthy. The system collapsed when money inflow from outside stopped.
Since the start of cryptocurrency sales in May, there have been investigations into several cryptocurrency developers around the world. On Wednesday, it was Do Kwon’s turn to prosecute. published warranties accused of violating South Korea’s capital markets law for himself and five others. Terraform Labs co-founder Daniel Sheen was the target of a police raid in July.
All six people named in Wednesday’s arrest warrant now live in Singapore, where Terraform Labs is registered. Kwon has been living there since December last year. claims He did it to protect his family, not to escape the law. Interview grasped During her stay in Singapore, she learned that she wasn’t bothered by the persecution, but was annoyed by the new nickname: “Elizabeth Holmes of cryptography”. once respected, but now-slandered Founder of controversial American biotech company Theranos.
“Life is long,” Kwon said when asked about the possibility of serving a prison sentence in August.
Cryptocurrency Bear fallen Another 35 percent when Kwon’s arrest warrant was made public on Wednesday.
Other cryptocurrencies swell 200% Same-Day Value: A new coin called “Jail Kwon” designed by angry Terra investors to “lighten the dire situation many owners are experiencing.”
Source: Breitbart
