The crypto world is captivated by the terror story, that is for sure, commonly known as dokkon is the creator of terra and luna the terra network. Token. Recently we have seen luna terra and the 2.0 version of these cryptocurrencies have been absolutely slaughtered and many are claiming it was a rug pull. But let's rewind, how did dokuan get here? Quaran completed high school at daiwan foreign language, high school and studied computer science at stanford university graduating in 2015.

after he worked for apple and microsoft, each for three months before returning to south korea in late 2015.. From there he quickly became the founder and ceo of onfi, incorporated from january 2016 to october of 2017. anvi focused on building peer-to-peer connectivity solutions using mesh networks after anfi seemed to cease operation. Dokwam set his sights on blockchain and web 3.

in january of 2018. Terraform labs was incorporated with dokwam presiding as the founder and ceo till this day, where we are now thousands of people's accounts absolutely wiped out and something that shouldn't be possible for a stablecoin. So how could this happen? It's a cycle of life. You begin from nothing and go back to nothing, that's exactly where i want to be so i think tara is going to be the decentralized money standard across the entire blockchain across all the blockchains, and i'm excited for care for labs to contribute a significant portion of That early vision, but eventually to go back to nothing right, excited well, there's something i didn't tell you.

Former terror employees have claimed that quan was also the founder of another failed stablecoin project that was dubbed basis cash and now we're reporting it's coming to light that you know don. This was sort of this first hack at the algorithmic stable point. The holy grail of a decentralized stable point basis was originally modeled off of a previous project, but the project was forced to shut down amid regulatory concerns. This is not confirmed, but there seems to be an interesting link between quan and the supposed rick sanchez that was involved in basis cash.

However, this was claimed to be a test by the former employee, who said quote: quan viewed basis cash as a pilot project for testing out the theory behind algorithmic stable coins. Now we get back to tara and luna again bear with me here. If you don't understand, crypto i'll make this quick and painless terra usd is an algorithmic, stable coin. That is meant to maintain a one to one peg with the us dollar.

However, ust isn't backed by the us dollar, as it keeps its peg via a burn and mint equilibrium. There is one token that is stable, ust or terra, while the other token luna is meant to capture volatility. Additionally, anchor porticon is offering a 20 interest rate on ust wallets in their application. Bloomberg states anchors current rate of 19.45 is an ambitious promise, even for an industry known for its explosive growth and minting overnight billionaires, some d5 projects used to offer even higher rates.

Just a year or two ago, during a d5 boom, but with few remaining projects, skeptics have questioned whether the rates are sustainable. Well, easy answer: they weren't with the high yielding anchor system. Some critics raised concerns that quan's stablecoin model could function like a ginormous ponzi scheme. British economist, francis coppola and others who criticized tara, quan, replied by calling them cockroaches and poor to follow this up.

Quan responded to a twitter investor asking where the capital for the yield reserves of the near 20 anchor protocol came from to which he responded. Your mom. Obviously, then, on may 9th ust began to break its peg to the dollar to it. Shortly after ust plunged to 10 cents, while luna fell to virtually zero from a 119.51 high, this alone wiped out 45 billion dollars in a mere week.

You must be wondering this must be pretty obvious by now. Well, in 2021, the sec subpoena terraform labs, due to virtually mirroring listed stocks on the blockchain kwan instead sued the sec back, but then was ultimately forced to oblige to the investigation after a year. In february 2022 by a u.s court judge in manhattan, so i i i can't comment on uh ongoing. You know lawsuits and investigations, but i just want to iterate that uh we're happy to speak to regulators uh across the world to educate them on the merits and uh potential problems of cryptocurrency and uh uh.

I think terraform lab shares my vision for that. After this quan filed to dissolve the korean entity on may 4th 2022, on the 17th day of may, the korean parliament and authorities considered a hearing discussing terraform labs and its founder, citing lack of regulatory framework on may 18th. It was found that terraform founders, quan and shin have been asked to pay additional taxes worth 100 million dollars in december of 2021. However, they reportedly refused to pay on grounds that they are not a korean entity.

This brings us to today, with nearly 300 000 korean luna investors taken down in the crash. There was an official announcement that they will be filing a class action lawsuit against quan via a domestic firm in korea. With this being known, quan decided to revive tara with luna 2 on may 28th, which has experienced volatility from the 30 high to a four dollar and one cent low. In its short time trading, this is being called tara, 2.0 and the question is: will investors fall for this again? History would unfortunately, suggest yes drop a like if you want these types of videos every saturday, thanks for tuning in take it easy peace.