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 towards the greenback a number of days in the past. It is a case of historical past repeating itself provided 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 towards the US greenback. However it failed to attain that stability towards the greenback, dropping under the peg in early 2021. As of press time, the stablecoin was buying and selling under a cent.
Kang reportedly mentioned
Foundation Money wasn’t examined in the meanwhile, and we weren’t even positive. (Kwon) needed to only try it out. He mentioned that this was a pilot undertaking 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 truly “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 undertaking.
Coindesk confirmed this by reviewing the inner chat logs of Foundation Money the place there was a message within the chat the place Kwon referred to himself as Rick.
Nonetheless, 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 accordance with Coindesk, it determined to dox the founder as a result of public curiosity. To date, the crash of UST and Luna has affected the broader crypto markets, with the worth of different digital property 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.