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Trash-Talking Crypto ‘Whiz’ Created a $40bn Crash – NYT

Do Kwon, the young Korean who created the Luna token, built a huge house of cards thanks to millions ploughed in by investment firms, despite the coin’s very unstable foundations


Employers in India who offer cryptocurrencies as compensation to employees will have to pay 30% tax on the virtual digital assets, the Economic Times reported
In the case of the employees, the transfer price would be considered the cost of acquisition. File photo: Reuters.

 

Do Kwon, the young, outspoken Korean entrepreneur who founded Terraform Labs and the now notorious Luna token, created a giant house of cards thanks to hundreds of millions of dollars ploughed into his crypto creation by investment firms, despite foundations now seen as “risky even by the standards of experimental crypto technology,” a report by the New York Times says.

TerraUSD – unlike Tether and other stablecoins backed by cash or traditional assets – “derived its supposed stability from algorithms that linked its value to Luna,” its sister currency. So when the price of crypto fell last week, it was no surprise to critics who had feared a crash was inevitable, the report says.

Read the full report: The New York Times.

 

ALSO on AF:

Binance Sees $1.6 Billion Evaporate on TerraUSD-Luna Crash

TerraUSD Stablecoin Collapse Unnerves Users, Regulators – Nikkei

Crypto Carnage Continues as Stablecoins Become Untethered

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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