Do Kwon, the Founder of Terra has a failed stablecoin portfolio in the past due to volatility
Terra has shocked the entire global cryptocurrency market with its drastic drop to US$0.00003877 with its token LUNA. The owner of Terra is known as Do Kwon and he is known for having a history of failed stablecoins in the global cryptocurrency market like BAC (Basis Cash). The current market rank is 230 from being within the list of the top ten cryptocurrencies. It is on the verge of being one of the failed stablecoins due to the de-pegging of UST.
Do Kwon: The owner of Terra (LUNA)
Do Kwon is known as the South Korean owner of the popular stablecoin and cryptocurrency, Terra (LUNA). As the Founder and CEO of Terraform Labs, he has to accept the drastic fall of Terra in recent times from being the constant US$1. It collapsed due to the old-fashioned run on the bank because it was not safe for holding onto the uncollateralized peg.
Other failed stablecoin by Do Kwon: Basis Cash
It has been noticed that Terra owner, Do Kwon, has also other failed stablecoins in his cryptocurrency portfolio other than the recent LUNA. He is known for using Rick Sanchez as his pseudonym for releasing an algorithmic stablecoin known as Basis Cash (BAC). BAC was ready to gain popularity for its aim to peg to the US dollar.
But the BAC failed stablecoin did not make it to the cryptocurrency market for a long period because it traded far below the US$1 benchmark. It remained below US$0.01 in 2021 which led to the loss of interest among cryptocurrency investors to drive profit. BAC is failed stablecoin project with a US$54.5 million footprint. On one hand, it was not tested properly as a stablecoin or cryptocurrency during the pilot period. On another hand, BAC was shut down due to some high-profile SEC risks as the decentralized stablecoin.
The protocol of BAC was designed to expand and contract supply similar to the way central banks trade fiscal debt to stabilize purchasing power without any collateral issue. This failed stablecoin was intended to be used as a medium of exchange in the form of Basis Cash, Basis Bond, and Basis Share. Do Kwon planned to distribute BAC tokens through yield farming with liquidity to BAC-DAI. It also launched the defunct stablecoin into the DeFi era.
In the end.
The credit has to go to the Terra or LUNA Founder, Do Kwon, for not stopping even after he experienced failed stablecoin, BAC, in 2021. Terra has reached one of the highest positions as a stablecoin in the top ten cryptocurrency list. Yes, sometimes a successful journey gains some ups and downs, but perseverance and consistency are needed. Thus, whether it was BAC or LUNA, Do Kwon will again use his strategies to enter the top ten cryptocurrency list.
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