Why Is Luna’s Do Kwon Not in Prison Yet?

While the community of ‘LUNAtics’ called the crash an “attack,” blaming Wall Street giants for conspiring to destroy them, Terra’s downfall seems to have been inevitable. Indeed, analysts warned that it was written into the code of the project itself.

Experts had tried to warn Kwon that the balance between the two tokens was vulnerable to undergoing a collapse if too many people pulled their money out simultaneously. However, intoxicated by the vision of himself as the next coming of Satoshi Nakamoto, Kwon neglected the criticism.

In 2018, Cyrus Younessi, an analyst for crypto investment firm Scalar Capital, foreseen that this type of project could enter a “death spiral”, a situation in which a crash in the price of Luna would bring the stablecoin down with it. In an interview, he asserted: “This is crazy. This obviously doesn’t work.”

Kevin Zhou, a hedge fund manager at Galois Capital, repeatedly predicted that the two currencies would crash. Some even went so far as to name the project a Ponzi scheme. Charles Cascarilla, a founder of Paxos and rival stablecoin, expressed doubts about the underlying technology behind LUNA. Kwon responded to Cascarilla patronizingly, tweeting, “Wtf is Paxos.”

Despite the debatable technological solidity of the foundations of the project, Kwon confidently promoted the safety of his UST stablecoin across social media. “Those of you waiting for the earth to become unstable – I’m afraid you will be waiting until the age of men expires,” he tweeted with hubris.

Indeed, just a week before UST lost its peg to the U.S. dollar, Kwon had been bragging, and ironically stated in an interview that “there’s also entertainment in watching companies die.”

Even days before the ultimate crash of Terra, Kwon looked down on doubters, calling them “poor”: “Anon, you could listen to C.T. influensooors about UST depegging for the 69th time, Or you could remember they’re all now poor, and go for a run instead.”

Source link: dailycoin.com

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