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Do Kwon is not finished yet

The memes and classic gossip Terra CEO Do Kwon has slammed critics on Twitter now calling with a hollow irony in the face of serious liquidations and a dollar-based stablecoin now 95 cents under the pin.

Someone saw it coming. In 2018, Cyrus Younessi, an analyst at the crypto investment company Scalar Capital, saw UST’s white paper and immediately warning his boss. The algorithm that links Kwon’s stablecoin to the dollar, Younessi said, could one day fail and cause a “death spiral” if Terra’s ecosystem was drained of capital too quickly.

Younessi was not alone. A small chorus in the industry warned about Terra’s danger and instability, among other things charles rememberCEO of stablecoin issuer Paxos, which publishes monthly certificates that the Paxos dollar is supported 1: 1 with fiat reserves and debt instruments, and Kevin Zhouco-founder of the crypto trading fund Galois Capital.

Kwon, 30, dispelled their concerns with more rubbish.

But now even Kwon has to admit that Younessi, Cascarilla and Zhou were Right always. After all, he was driving last nail in UST’s coffin itself.

The hubris

Hubris is often seen as excessive pride, even if it is not Aristotle used it: “Hubris consists in doing and saying things that cause shame to the victim … simply for the joy of it. Young men and the rich are hubris because they think they are better than other people. “

Two millennia later, Aristotle may be a bunch of bones, but his words paint a vivid portrait of Kwon, the CEO who not only thought he was too smart and too popular to fail, but as a public figure. threatened competitors and confessed their joy at seeing others fail.

His own failure has given the industry more than a lesson on how not to make an algorithmically stable coin: It is a sober reminder of the cult of personality that enables people like Donald Trump and El Salvador’s President Nayib Bukele to silence critics with the power of their egonot the correctness of their arguments.

Kwon’s promise was up there with MAGA: He would make Terra “the biggest decentralized money in crypto, period“As long as he gave his LUNAtics reasons to believe in him, aka profit, he did not have to answer to anyone.

Then came May 9, 2022, when UST fell 20 cents under its stick.

The humiliating

Terra’s collapse brought out how little we knew about Kwon beyond his LinkedIn and Twitter profiles. He graduated from Stanford in 2015 after studying computer science, and worked briefly Microsoft and Apple before forming Terra.

Two days after UST’s fall began, reportedly CoinDesk doxxed Kwon as “Rick” – a reference to half of the cartoon duo in “Rick and Morty” – behind another failed algorithmic stablecoin project called Basic Cash (BAC), which released the dollar bond for good early last year. BAC is now worth it a fraction of a penny.

Still, Kwon is steadfast. After two days of Twitter silence last week, he finally got it took the heat for UST’s historic failure. Besides, it seems that he has taken on the task of rebuilding Terra. On Monday, he proposed splitting LUNA’s blockchain and renaming the current chain Terra Classicwith the new chain dried by UST.

Kwon’s proposal was met with almost unanimity disapproval in a preliminary poll on Terra’s community forum. Many would prefer Kwon to listen to Changpeng Zhaos suggestion to buy and burn most of LUNA’s hyper-inflated circulating supply of 6.5 trillion tokens. Kwon knows what society wants, but he is argues against it. This time he gets involved critical and constructive conversations with his critics, instead of just dismissing them simply.

He is also very warm. All kinds accusations has been thrown at him by angry investors and restless Twitter users, including allegations of fraud and insider trading. Local Korean sources has said he may have evaded taxes, although this weekend he seemed to dismiss these rumors and said he is completely settled up with the Korean government.

The crypto community will sort facts from RD&D in the weeks – months? – which comes, but Kwon goes nowhere, which means that Terra remains on everyone’s radar, whether it is solvable or not. Kwon’s charming hubris and digital fool gold may have been an intoxicating vision for his flatterers, but that faucet ran dry, and the room has sobered up. At least for now.

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