As LUNA falls, there will inevitably be lawsuits and criminal prosecutions against creator Do Kwon, davidzmorris writes.
All of those entities should take time in the coming days to address their involvement in the project, whose fundamentals were so questionable it could become a black eye not only for its founder but for the crypto industry. Some backed Terraform Labs – the development team that built Terra-based tools and applications like the Mirror and Anchor protocols – rather than Luna/UST specifically, and should defensively clarify that if so.
Occam’s razor suggests some big-name investors weren’t necessarily driven by Terra’s fundamentals. Notoriously, discounts for early backers and short lockup periods can mean venture capitalists make plenty of money even when a crypto project fails. And even if these funds did in some sense believe in the project, that faith might have been premised more on Kwon’s blustering, made-for-2022 persona than on Terra’s technological potential.
That raises a final possible parallel to Holmes: Some have made the argument that she was to a degree herself a victim of the Silicon Valley funding machine. Some venture capitalists, the logic goes, saw the marketing potential of her story and image, but avoided scrutinizing her abilities and ideas. As dramatized in the Hulu series “The Dropout,” this made Holmes little more than a tool for generating alpha, to be cast aside if and when anything went wrong.
For professional investors who were truly taken in by Do Kwon – his grandstanding, his anger and all the rest – it may be time for even more serious self-reflection.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Terra's Do Kwon 8 Days Ago: There's Entertainment in Watching Companies DieExactly eight days ago, Do Kwon said that there's entertainment in watching companies die.
Read more »
Do Kwon Wants Protection as Unidentified Person Visits His House: ReportDo Kwon's wife has requested the police to designate 'emergency personal protection' after an unidentified person visits their apartment.
Read more »
After Terra’s stablecoin implosion, battered investors ask ‘where is Do Kwon?’After Terra’s stablecoin implosion, battered investors ask ‘where is Do Kwon?’ By Quinnishvili
Read more »
Breaking: Do Kwon proposes Terra revival, including token redistribution planAfter two days of silence, the Terra founder has issued a new governance proposal keep the community alive and compensate token holders.
Read more »
Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holdersDo Kwon, the co-founder and CEO of Terraform Labs, pitched a revival plan proposal on Friday following the collapse of the algorithmic stablecoin UST and its related Terra-based asset, Luna.
Read more »
Terra’s Do Kwon Lays Out Plan to Revive Embattled NetworkDo Kwon has introduced his plan to revive the embattled cryptocurrency project
Read more »