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Saturday, February 3, 2024

Terra founder reportedly has hyperlink to failed stablecoin, Foundation Money

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A former Terra Labs worker has reportedly revealed that Terra co-founder Do Kwon was one of many creators of Foundation Money. This algorithmic stablecoin failed final yr, a Coindesk report has revealed.

Citing a former engineer at Terraform Labs, Hyungsuk Kang, the report said that Foundation Money was, in reality, the early works of Terra creators, together with Kwon.

The revelation is coming amidst the crash of UST, which misplaced its peg in opposition to the greenback just a few days in the past. This can be a case of historical past repeating itself on condition that the identical factor occurred with Foundation Money.

Per the report, a gaggle of nameless builders launched Foundation Money on Ethereum in 2020 as an algorithmic stablecoin pegged in opposition to the US greenback. Nevertheless it failed to attain that stability in opposition to the greenback, dropping under the peg in early 2021. As of press time, the stablecoin was buying and selling under a cent.

Kang reportedly stated

Foundation Money wasn’t examined in the meanwhile, and we weren’t even positive. (Kwon) needed to simply try it out. He stated that this was a pilot venture for doing that (UST).

One other particular person concerned in constructing Foundation Money, who spoke anonymously, confirmed Kang’s assertion. Each added that Kwon was really “Rick Sanchez,” the pseudonymous co-founder of Foundation Money. The 2 founders of Foundation Money had adopted Rick and Morty names as pseudonyms for the venture.

Coindesk confirmed this by reviewing the interior chat logs of Foundation Money the place there was a message within the chat the place Kwon referred to himself as Rick.

Nevertheless, Foundation Money was not profitable. Its market cap was solely in a position to hit $174 million, far under that of UST, which, at its peak, grew into the third-largest stablecoin by market cap.

In response to Coindesk, it determined to dox the founder on account of public curiosity. Thus far, the crash of UST and Luna has affected the broader crypto markets, with the worth of different digital belongings plummeting to new lows.

Do Kwon has, nonetheless, proceedd to name for calm, stating that his staff has a long-term plan to show issues round.


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