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Terra Luna crashes 97%: Was Do Kwon responsible for another failed stablecoin?

Terra Luna crashes 97%: Was Do Kwon responsible for another failed stablecoin?

Former Terra employees claim that Do Kwon, founder of Terraform Lab was responsible for the failed stablecoin Basis Cash. 

Terra Luna has crashed 97 per cent in the last 24 hours. Terra Luna has crashed 97 per cent in the last 24 hours.

As Terra Luna hits great lows, with the token crashing 97 per cent amid the TerraUSD or $UST de pegging fiasco, Do Kwon, founder of Terraform Labs is under scrutiny.

Former employees of Terra are claiming that the developer was also the founder of another failed stablecoin project called Basis Cash, as reported by Coindesk. 

What was Basis Cash? 

When Basis Cash (BAC) emerged on Ethereum in late 2020, soon before the launch of TerraUSD (UST), Terra's flagship stablecoin, it was a much-anticipated resurrection in DeFi circles. BAC, like UST, sought to maintain a $1 peg through code rather than collateral. 

What happened to Basis Cash? 

Surprisingly, Basis Cash (BAC) project never achieved dollar parity. The token went below $1 in early 2021. 

And as per data from CoinMarketCap, the currency was down 17.80% and was trading at $0.006661 as of 10:20 am IST on Thursday. 

History repeats itself? 

Terra Luna, the cryptocurrency by Terraform Labs, has dropped by 97 per cent in the recent twenty-four hours. At 10:20 am IST on Thursday, the crypto was trading for $0.3437 on CoinMarketCap. 

Will Terra Luna recover? 

In the wake of the Terra Luna crash, Terraform Labs CEO Do Kwon declared on Twitter on Wednesday that he has a plan to bring back Terra on the recovery path. 

He said that he would soon announce the plan and supporters should hang tight. 

Moreover, there are also rumours that Terraform Labs is in touch with other investors in order to boost the cryptocurrency's value. 

Also Read: Do Kwon's plan to save Terra Luna after CRASH  - BusinessToday

Also Read: Terra Luna CRASHES over 85% Why? find out  - BusinessToday