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ANCHOR WAS DESIGNED TO OFFER AN INTEREST RATE OF 3.6% BUT CHANGED LAST MIN

ANCHOR WAS DESIGNED TO OFFER AN INTEREST RATE OF 3.6% BUT CHANGED LAST MIN

The anchor protocol was originally designed to give an interest rate of 3.6%, but this was up to 20% just a week before it was released to attract more investors, allegedly the main developer in an interview with Korean news agency JTBC.


“I did not know that this would result in such a high interest rate. Set at 20% just a week before release, ”said the employee, who is referred to only as Mr. B in Korean report:


“I thought I would fall from the beginning. (I designed it), but it collapsed 100%.

Mr. B said the stadium was only designed to provide interest of 3.6%, and this was an important factor in keeping the Terra ecosystem stable as it considers the funds available to Anchor's chest.


Mr B revealed, however, that a week before the launch, the developers found that the plans had been changed, giving investors access to a much higher interest rate of 20% to lock their stable TerraUSD Classic (USTC) in Anchor Protocol instead.


JTBC also claimed to have acquired interior design documents produced by Terraform Labs, which wrote to attract investors with high interest rates.


The developer said he tried to discuss the matter with Terra Luna founder Kwon Do-Hyung (Do Kwon) shortly before its launch in April 2019:


"Shortly before my release, I suggested to CEO Kwon Do-Hyung that interest be reduced, but it was not accepted."

The dramatic collapse of Terra Classic (LUNC) and algorithmic stablecoin USTC has led to plans for the South Korean government to launch a new Digital Asset Committee in June that will act as the custodian of the country's crypto industry responsible for drafting and regulating policy.


Do Kwon has been summoned to a parliamentary hearing on the issue in South Korea in mid-May.



He also found himself in hot water after court documents revealed he disbanded Terraform Labs Korea a few days before the Terra accident.


In May, South Korean authorities reportedly issued subpoenaes to Terraform Labs employees, investigating whether there were any intentional price fraud and whether the tokens had gone through the proper listing process.


Despite this, the founder of Terra was able to re-launch the collapsed network on May 28 with a new series called Terra 2.0, also known as Pheonix-1, aimed at reviving the fallen Terra (LUNA) and TerraUSD (UST).

Source: cointelegraphy



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