Twitter’s Wu blockchain It said the initial interest on the Anchor protocol should be 3.6%, and then Do Kwon changed it to 20% before it was released.
media jtbc Reportedly, Terraform Labs co-founder and CEO Do Kwon decided that prices would stay at that rate in order to attract more investors.
Mr.B, one of the main developers of the protocol. Say that 3.6% return is quite high. Even so, he still chooses to offer higher returns than banks and other financial institutions. This ROI brings a lot of investment. He also noted that the initial ROI was low. Because the platform initially didn’t have enough capital to pay off investors.
Mr.B also said he advised Do Kwon that ROI should be reduced, but Mr. Kwon declined in 2019 and said that if the company fails to pay 20% ROI to investors, LUNA may end the project.
Weeks before Terra’s collapse, Binance took a look at the LUNA and UST projects.
Binance is the largest trading platform in the world, raising the LUNA project as a worthwhile investment. And as a result, more people are investing in stablecoin UST in May.
Binance has called the project “safe and happy” By saying that a 20% return on investment makes it very profitable. The problem, however, is not that Binance promotes UST, but why the exchange doesn’t highlight the potential risks.
What followed following the collapse of the project?
Mr.B isn’t the only Terraform Labs employee to say that Do Kwon was the cause of Terra’s collapse in May. Another LUNA staff member revealed that despite the failure of the testing process, Do Kwon continued to launch the LUNA project.
Mr Do Kwon is facing prosecution and stringent investigations from government agencies in South Korea. He is accused of being solely responsible for the collapse of the LUNA coin.
The reason why he encountered this problem was Court documents show that he disbanded Terraform Labs and all sub-teams before the collapse.
At the end of May, Do Kwon distributed LUNA 2.0 via Airdrop so that users might get their money back. Terraforms Labs named it ‘Phoenix’. It was created to help restore TerraUSD (UST) and LUNA, but following using Less than 14 days of work, the coin price dropped sharply.
