a former land A Labs employee reportedly revealed that Terra co-founder Do Kwon was one of the creators of Basic Cash. This algorithmic stablecoin failed last year, a Coindesk report Has revealed.

Quoting a former engineer from Terraform LaboratoriesHyungsuk Kang, the report stated that Basis Cash was, in fact, the early works of the creators of Terra, including Kwon.

The revelation comes in the midst of the shock from UST, which lost its parity against the dollar a few days ago. This is a case of history repeating itself as the same thing happened with Basis Cash.

According to the report, a group of anonymous developers released Basis Cash in Ethereal in 2020 as an algorithmic stablecoin pegged to the US dollar. But it failed to achieve that stability against the dollar, falling below parity in early 2021. At press time, the stablecoin was trading below a penny.

Kang allegedly said

Basis Cash was not tested at this time, and we weren’t even sure. (Kwon) I just wanted to try it. He said this was a pilot project to do that (UST).

Another person involved in the construction of Basis Cash, who spoke anonymously, confirmed Kang’s statement. Both added that Kwon was actually “Rick Sanchez”, the pseudonymous co-founder of Basis Cash. The two founders of Basis Cash had adopted the names Rick and Morty as pseudonyms for the project.

Coindesk confirmed this by reviewing Basis Cash’s internal chat logs where there was a message in the chat where Kwon referred to himself as Rick.

However, Basis Cash was not successful. Its market cap was only able to reach $174 million, well below that of UST, which, at its peak, became the third largest stablecoin by market cap.

According to Coindesk, he decided to cheat the founder due to public interest. So far, the fall of UST and Luna has affected the broader crypto markets, with the value of other digital assets. plummeting to new lows.

Do Kwon has, however, Followd to call for calm, stating that his team has a long-term plan to turn things around.

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This post Terra Founder Reportedly Has a Link to Failed Stablecoin Basis Cash

was published first on https://cryptoslate.com/terra-founder-reportedly-has-link-to-failed-stablecoin-basis-cash/


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