The Unexpected Surge: From 3.6% to 20%
In a shocking twist reminiscent of a bad thriller, the Anchor Protocol team made a significant last-minute alteration to their interest rate scheme, cranking it up from a stable 3.6% to a jaw-dropping 20% merely a week before the much-anticipated launch. This revelation comes from Mr. B, a core developer, who spilled the beans during an interview with South Korean media outlet JTBC.
A Cautionary Tale from Within
“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%,” Mr. B lamented, throwing his hands up in disbelief, perhaps wishing they had a crystal ball. The original interest rate was said to align with the financial capabilities of the Anchor Protocol, designed to ensure the stability of the Terra ecosystem.
The High-Stakes Gamble
However, the last-minute escalation of the interest rate was not a mere oversight. Mr. B indicated that internal documents from Terraform Labs hinted at tactics aimed at luring in investors with promises of high returns. “Just before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered,” he admitted. Unsurprisingly, his advice fell on deaf ears.
The Fallout: South Korea Reacts
The catastrophic collapse of both Luna Classic (LUNC) and the algorithmic stablecoin USTC has prompted the South Korean government to step into the ring, planning to form a Digital Asset Committee tasked with overseeing the local crypto scene. Talk about a buzzkill!
Legal Troubles Ahead
Do Kwon, Terra’s infamous co-founder, has been summoned to a parliamentary hearing set for mid-May, where he will likely dodge some tough questions while trying to keep a straight face. Adding to his woes, court documents revealed the dissolution of Terraform Labs Korea shortly before the notorious Terra crash. Coincidence? Perhaps not.
The Deeper Dive: Subpoenas and Scrutiny
May also brought about legislative thunder as South Korean authorities issued subpoenas to Terraform Labs employees to investigate potential price manipulation and scrutinize the token listing protocols. You know, just casual routine checks in the world of crypto chaos.
Lifting Off Again: The Phoenix Rises?
Despite the fiasco, Do Kwon managed to patch things up—sort of. On May 28, he reintroduced the network under the banner of Terra 2.0, or as it’s been rebranded, Phoenix-1. Aiming to resurrect LUNA, one can’t help but feel this may just be the sequel nobody asked for, but here we are, folks!
