Media: Terra CEO has previously launched an unsuccessful stablecoin project

According to CoinDesk, Terra CEO Do Kwon had previously launched the unsuccessful stablecoin Basis Cash, which collapsed shortly after launch. It looks like the same fate awaits the UST.

how report CoinDesk journalists Danny Nelson and Sam Kessler, formerly Do Kwon, was behind an Ethereum-based algorithmic stablecoin called Basis Cash. The stablecoin was supposed to bring back to life the concept of Basis, which “withered” due to regulatory concerns. Basis Cash was introduced in August 2020.

Information was provided to journalists by some employees of Terra, who wished to remain anonymous. According to them, Do Kwon was one of the two creators of Basis Cash, and in the project he appeared under the pseudonym Rick Sanchez (Rick Sanchez) – a reference to the popular animated series Rick and Morty. They also revealed that Basis Cash was mainly developed by Terra.

Basis Cash was successfully launched, and its capitalization in December 2020 reached $175 million. However, a few days after reaching the peak, the indicator collapsed and now the stablecoin is trading at $0.007.

Interestingly, in parallel, Do Kwon was also working on the UST stablecoin – the project was launched in September 2020. This stablecoin lasted much longer, and its capitalization recently exceeded $17.5 billion. On May 11, the UST price fell to $0.21, but at the time of publication, the stablecoin managed to return to $0.65. At the same time, the LUNA rate continues to fall – if yesterday the coin was traded at $5, now it is only at $0.31.

Against this background, the US Federal Reserve System (FRS) released another report in which it warned about the risks of cryptocurrencies for financial stability.