Terra was destined to fail from the start, say Anchor devs
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Of course, now that we have experienced it, they can say anything. And if they really knew it was coming, why wouldn’t they warn us?
The collapse of Terra (LUNA) and its algorithmic stablecoin UST was inevitable, and it was obvious since the earliest stages, say the developers of the Anchor project. They stated it anonymously in an interview with the South Korean TV channel JTBC.
The Anchor devs further explained that the calculations made on the design stage implied a fixed interest rate of 3.6%. Do Kwon, however, demanded that it should be set at 20%. This all happened just a week before the project’s launch.
It didn’t help that the devs warned Kwon about the possible consequences and insufficient reserves to pay such high interest. According to the Anchor team, he was firm in his belief that this was the right thing to do. Do Kwon is a kind of man who makes all decisions regarding his project by himself, they added.
“Do Kwon is able to make people believe even the most absurd things. He did everything he wanted,” said one of the devs.
A few days ago, an ecosystem analyst known by the Twitter handle FatManTerra made a thread about Terra’s alleged fake reports. Citing his own sources at Terra, he said that in 2020, the management distorted the data regarding blockchain activity in order to secure venture capital funding.
FatManTerra also stated that Kwon’s claims about LUNA 2.0 being owned by the community are false. According to him, the management took part in the airdrop using shadow wallets. As much as 42 million LUNA is stored on these wallets and therefore belongs to the TerraForm Labs, he emphasized.
You know, this LUNA situation was fishy for a long time. But frankly, I think it’s easy to say something was destined to fall after the fact. For example, now we know a plethora of reasons why the economic crisis of 2008 happened. But it was not this easy to see them before it happened.
And sure, I believe that Terra’s practices are shady. Will they be able to redeem themselves at some point? I don’t know. Guess we’ll have to see.
Source: JTBC
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