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
