Luna Terra Algorithmic Stablecoin Crash - Revision history

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← Older revision		Revision as of 14:05, 5 July 2023
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	== About Do Kwon ==		== About Do Kwon ==
	Do Kwon, ~~whose birth name is~~ Kwon Do-Hyung<ref>[http://m.koreatimes.co.kr/pages/article.asp?newsIdx=329104 Is Terra-Luna's collapse prelude to end of cryptocurrency? - The Korea Times] (May 13, 2022)</ref><ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref> was a South Korean blockchain developer<ref name=":6">[https://pontem.network/posts/who-is-do-kwon-the-man-behind-the-luna-project-shook-the-world Who is Do Kwon? The man behind the LUNA project shook the world. - Pontem Blog] (Jul 3, 2023)</ref> and co-founder and CEO of Singapore-based Terraform Labs, the parent company of crashed stablecoin TerraUSD and cryptocurrency Luna<ref name=":4">[https://www.washingtonpost.com/technology/2022/06/01/terraform-labs-crypto-luna/ Their cryptocurrencies crashed the market. Now they're back at it. - Washington Post] (Nov 3, 2022)</ref>. Do Kwon is known for his confident and outspoken nature on Twitter, often criticizing competitors and detractors<ref name=":6" />.		Do Kwon was born in Seoul, South Korea as Kwon Do-Hyung<ref>[http://m.koreatimes.co.kr/pages/article.asp?newsIdx=329104 Is Terra-Luna's collapse prelude to end of cryptocurrency? - The Korea Times] (May 13, 2022)</ref><ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref> on September 6, 1991<ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref><ref name=":6" /><ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. He displayed a keen interest in computing from a young age<ref name=":9" />. He attended Daewon Foreign Language High School in Seoul and went on to earn a Bachelor's degree in computer science from Stanford University in 2015<ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref><ref name=":6" /><ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. After graduation, Kwon worked as either a salesperson<ref name=":9" /> and/or software engineer<ref name=":5" /><ref name=":6" /><ref name=":7" /> for Microsoft and Apple, marketing their products as a "business partner."<ref name=":9" /> He reportedly found the work uninteresting and left after just three months<ref name=":6" />.

	~~Do Kwon was born in Seoul, South Korea,~~on September 6, 1991<ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref><ref name=":6" /><ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. He displayed a keen interest in computing from a young age<ref name=":9" />. He attended Daewon Foreign Language High School in Seoul and went on to earn a Bachelor's degree in computer science from Stanford University in 2015<ref name=":5">[[wikipedia:Do_Kwon\|Do Kwon - Wikipedia]] (Jul 3, 2023)</ref><ref name=":6" /><ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. After graduation, Kwon worked as either a salesperson<ref name=":9" /> and/or software engineer<ref name=":5" /><ref name=":6" /><ref name=":7" /> for Microsoft and Apple, marketing their products as a "business partner."<ref name=":9" /> He reportedly found the work uninteresting and left after just three months<ref name=":6" />.

	During 2015, he also developed his own product called AnyFi<ref name=":9" /> and eventually founded a company in 2016<ref name=":5" /><ref name=":6" /><ref name=":7" />. AnyFi was a telecommunication company which developed a peer-to-peer communications solution using mesh network technology<ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. AnyFi enables the creation of Peer-to-Peer (P2P) mesh networks, providing communities with network and internet access<ref name=":9" />. The company quickly received $1 million in funding from investors<ref name=":6" />. He was the CEO of AnyFi until 2017<ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>.		During 2015, he also developed his own product called AnyFi<ref name=":9" /> and eventually founded a company in 2016<ref name=":5" /><ref name=":6" /><ref name=":7" />. AnyFi was a telecommunication company which developed a peer-to-peer communications solution using mesh network technology<ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>. AnyFi enables the creation of Peer-to-Peer (P2P) mesh networks, providing communities with network and internet access<ref name=":9" />. The company quickly received $1 million in funding from investors<ref name=":6" />. He was the CEO of AnyFi until 2017<ref name=":7">[https://golden.com/wiki/Do_Kwon-VWKXAND Do Kwon - Golden Wiki] (Jul 3, 2023)</ref>.

	Kwon started to immerse himself in the crypto space around 2017, but it wasn't until 2018 that he made significant strides with the launch of Basis Cash<ref name=":9" />. Do Kwon was one of the pseudonymous co-founders of basis cash<ref name="greythorn-8473" />. Basis Cash aimed to create an algorithmic stablecoin pegged to the US dollar, and the project raised $133 million in funding<ref name=":9" />. However, regulatory pressure from the SEC led to the project's demise, highlighting the challenges faced in the crypto industry~~<ref name=":9" />.~~		Kwon started to immerse himself in the crypto space around 2017, but it wasn't until 2018 that he was a blockchain developer<ref name=":6">[https://pontem.network/posts/who-is-do-kwon-the-man-behind-the-luna-project-shook-the-world Who is Do Kwon? The man behind the LUNA project shook the world. - Pontem Blog] (Jul 3, 2023)</ref> and made significant strides with the launch of Basis Cash<ref name=":9" />. Do Kwon was one of the pseudonymous co-founders of basis cash<ref name="greythorn-8473" />. Basis Cash aimed to create an algorithmic stablecoin pegged to the US dollar, and the project raised $133 million in funding<ref name=":9" />. However, regulatory pressure from the SEC led to the project's demise, highlighting the challenges faced in the crypto industry<ref name=":9" />.

	The idea for Terraform Labs and the Terra blockchain was conceived in 2018 when Kwon and his college friend Nicholas Platias wrote the initial code in an Airbnb apartment<ref name=":6" />. Their aim was to create a decentralized payment system accessible to everyone<ref name=":6" />. The name "Terra" was inspired by the character Terran from the game StarCraft, which Kwon is a fan of. The character is known for being adaptable in any situation<ref name=":6" />. Do Kwon and Daniel Shin founded Terra Labs together in 2018<ref name=":7" /><ref name=":9">[https://academy.bit2me.com/en/quien-es-do-kwon/ Who is Do Kwon? - Bit2Me Academy] (Jul 3, 2023)</ref>. With the support of investors like Arrington Capital, Pantera Capital, and Galaxy Digital, they raised $150 million to build a high-speed blockchain integrated with a dollar-pegged stablecoin<ref name=":9" />. This vision laid the foundation for Terra, Luna, and the Terra blockchain ecosystem<ref name=":9" />.

			The idea for Terraform Labs and the Terra blockchain was conceived in 2018 when Kwon and his college friend Nicholas Platias wrote the initial code in an Airbnb apartment<ref name=":6" />. He became co-founder and CEO of Singapore-based Terraform Labs<ref name=":4">[https://www.washingtonpost.com/technology/2022/06/01/terraform-labs-crypto-luna/ Their cryptocurrencies crashed the market. Now they're back at it. - Washington Post] (Nov 3, 2022)</ref>. Their aim was to create a decentralized payment system accessible to everyone<ref name=":6" />. The name "Terra" was inspired by the character Terran from the game StarCraft, which Kwon is a fan of<ref name=":6" />. The character is known for being adaptable in any situation<ref name=":6" />. Do Kwon and Daniel Shin founded Terra Labs together in 2018<ref name=":7" /><ref name=":9">[https://academy.bit2me.com/en/quien-es-do-kwon/ Who is Do Kwon? - Bit2Me Academy] (Jul 3, 2023)</ref>. With the support of investors like Arrington Capital, Pantera Capital, and Galaxy Digital, they raised $150 million to build a high-speed blockchain integrated with a dollar-pegged stablecoin<ref name=":9" />. This vision laid the foundation for Terra, Luna, and the Terra blockchain ecosystem<ref name=":9" />.

			Do Kwon is known for his confident and outspoken nature on Twitter, often criticizing competitors and detractors<ref name=":6" />.

	TBD - More research on <ref name=":7" /><ref>[https://www.coindesk.com/policy/2021/12/10/most-influential-2021-do-kwon/ Most Influential 2021: Do Kwon - CoinDesk] (Jul 3, 2023)</ref><ref>[https://coin98.net/who-is-do-kwon Who is Do Kwon? “The king” behind the Terra era that crashed in days - Coin98] (Jul 3, 2023)</ref>		TBD - More research on <ref name=":7" /><ref>[https://www.coindesk.com/policy/2021/12/10/most-influential-2021-do-kwon/ Most Influential 2021: Do Kwon - CoinDesk] (Jul 3, 2023)</ref><ref>[https://coin98.net/who-is-do-kwon Who is Do Kwon? “The king” behind the Terra era that crashed in days - Coin98] (Jul 3, 2023)</ref>

	== About Terra Labs ==		== About Terra Labs ==



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	=== Arrest of Do Kwon ===		=== Arrest of Do Kwon ===
	On 23 March 2023, Kwon was arrested in Montenegro, while attempting to travel to Dubai using falsified documents. Following his arrest, he was charged by a US federal grand jury of eight counts, including [[wikipedia:Securities_fraud\|securities fraud]], commodities fraud, wire fraud, and conspiracy.		On 23 March 2023, Kwon was arrested in Montenegro, while attempting to travel to Dubai using falsified documents. Following his arrest, he was charged by a US federal grand jury of eight counts, including [[wikipedia:Securities_fraud\|securities fraud]], commodities fraud, wire fraud, and conspiracy.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

	~~== General Prevention Policies ==~~		TBD partial completed prevention policies template?
	There were a number of warnings prior to the collapse from multiple experts. No opinions were sought prior to launching the protocol and any attempts to reduce the risk through the reserve fund happened well into the protocol running. Terra was managed largely by Do Kwon himself rather than any group to balance decision making and avoid mistakes. There was no insurance available for investors to protect against protocol failure.
	~~== Individual Prevention Policies ==~~		The death spiral which occurred in Terra/Luna is not unique to that protocol, and had played out previously, including on protocols such as Basis Cash, which Do Kwon had been involved with. It comes from the fundamental ability for the protocol to mint an unlimited amount of Luna tokens, based on the current price, which has the ability to flood the market. Very limited information was provided and assessed on the risks of the protocol collapsing. There were a number of warnings prior to the collapse from multiple experts.
	The death spiral which occurred in Terra/Luna is not unique to that protocol, and had played out previously, including on protocols such as Basis Cash, which Do Kwon had been involved with. It comes from the fundamental ability for the protocol to mint an unlimited amount of Luna tokens, based on the current price, which has the ability to flood the market. Very limited information was provided and assessed on the risks of the protocol collapsing.

	{{Prevention:~~Individuals~~:~~Placeholder~~}}		{{Prevention:Individual:Avoid Third Party Custodians}}

	{{Prevention:Individual:Safe Smart Contract Usage}}		{{Prevention:Individual:Safe Smart Contract Usage}}
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	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	{{Prevention:Platforms:Placeholder}}		{{Prevention:Platforms:Placeholder}}

			There were a number of warnings prior to the collapse from multiple experts. There were limited expert opinions sought prior to launching the protocol and any attempts to reduce the risk through the reserve fund happened well into the protocol running. Terra was managed largely by Do Kwon himself rather than any group to balance decision making and avoid mistakes. There was no insurance available for investors to protect against protocol failure.

	{{Prevention:Platforms:Cryptocurrency Safety Quiz}}		{{Prevention:Platforms:Cryptocurrency Safety Quiz}}

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2023-07-04T21:44:26Z

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Azoundria: Another 30 minutes completed. About Do Kwon more.

2023-07-04T02:27:39Z

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2023-06-29T20:29:13Z

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← Older revision		Revision as of 14:29, 29 June 2023
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	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
	There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.		There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

			=== Luna Foundation Guard ===
			The executive summary presents a community proposal for deploying Bitcoin reserves to defend the UST peg<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The proposal suggests creating a reserve pool that provides rapid BTC liquidity to support UST during downward peg deviations<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The pool would operate similarly to the LUNA <> UST on-chain mechanism but with distinct architecture and parameters<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The reserve model aims to deploy liquidity during crises and to be simple and operationalizable<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. Retail traders would access the pool at a discount, initially exchanging 1 UST for $0.98 in BTC, providing a backstop for UST during a crisis<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. After the crisis, external traders could purchase UST with BTC, draining the accumulated UST from the pool<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The model assumes robust private markets for UST and expresses liquidity on decentralized and centralized exchanges<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The reserve mechanics involve forking the virtual AMM for the LUNA <> UST mechanism, with differences in asset delivery/holding and parameterization for entry and exit flows<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The proposal recommends asymmetrical parameters to split UST → BTC and BTC → UST flows and defend against oracle attacks<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The parameters include BasePool, PoolRecoveryPeriod, and MinSpread<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. Empirical assessments are provided for exit flow parameters, indicating the available liquidity and slippage rates. Similarly, entry flow parameters are discussed based on desired replenishment of BTC in the reserve after a crisis<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The section also addresses oracle attacks, including stale oracles and manipulated oracles, proposing strategies to protect against them<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>. The implementation of daily BTC redemption caps is suggested as an additional safeguard. Community input is sought for further guidance and discussion<ref name=":3">[https://web.archive.org/web/20220324082231/https://agora.terra.money/t/bitcoin-reserve-pool/5259 Bitcoin Reserve Pool - Proposal By Jump Trading - Terra Research Archive March 24th, 2022 2:22:31 AM MDT] (Jun 29, 2023)</ref>.

	== The Reality ==		== The Reality ==
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	\|"March 23: Do Kwon tweets “By my hand DAI will die” as he begins in earnest plans to starve off decentralized stablecoin DAI’s liquidity on Curve."<ref name="coindesk-8069" /><ref>[https://twitter.com/stablekwon/status/1506494471873081352 Do Kwon - "By my hand $DAI will die." - Twitter] (Jun 28, 2023)</ref><ref>[https://www.vice.com/en/article/g5q93b/stablecoins-are-in-a-war-for-dominance-and-its-getting-ugly Stablecoins Are in a War for Dominance and It’s Getting Ugly - Vice] (Jun 28, 2023)</ref> TBD description		\|"March 23: Do Kwon tweets “By my hand DAI will die” as he begins in earnest plans to starve off decentralized stablecoin DAI’s liquidity on Curve."<ref name="coindesk-8069" /><ref>[https://twitter.com/stablekwon/status/1506494471873081352 Do Kwon - "By my hand $DAI will die." - Twitter] (Jun 28, 2023)</ref><ref>[https://www.vice.com/en/article/g5q93b/stablecoins-are-in-a-war-for-dominance-and-its-getting-ugly Stablecoins Are in a War for Dominance and It’s Getting Ugly - Vice] (Jun 28, 2023)</ref> TBD description
	\|-		\|-
	\|March 25th, 2022		\|March 23rd, 2022 12:40:10 PM MDT
	\|Speculation About Limited Reserves		\|Jump Trading Bitcoin Reserve Proposal Submitted
	\|There is speculation on Twitter and other media platforms that LFG only purchased 2,840 BTC (worth $125m USD)<ref name="greythorn-8473" />.		\|"March 23: Jump Trading, one of the investors behind LFG, proposes a mechanism for how to deploy the bitcoin (BTC) reserves to prop up UST’s price in a crisis."<ref name="coindesk-8069" /><ref name=":3" /><ref>[https://www.coindesk.com/markets/2022/04/22/bailout-fund-backstop-or-bouncy-ball-heres-how-lfgs-bitcoin-reserve-might-work/ Bailout Fund, Backstop or Bouncy Ball? Here's How LFG's Bitcoin 'Reserve' Might Work - CoinDesk] (Jun 29, 2023)</ref> The executive summary presents a community proposal for deploying Bitcoin reserves to defend the UST peg. The proposal suggests creating a reserve pool that provides rapid BTC liquidity to support UST during downward peg deviations. The pool would operate similarly to the LUNA <> UST on-chain mechanism but with distinct architecture and parameters. The reserve model aims to deploy liquidity during crises and to be simple and operationalizable. Retail traders would access the pool at a discount, initially exchanging 1 UST for $0.98 in BTC, providing a backstop for UST during a crisis. After the crisis, external traders could purchase UST with BTC, draining the accumulated UST from the pool. The model assumes robust private markets for UST and expresses liquidity on decentralized and centralized exchanges. The reserve mechanics involve forking the virtual AMM for the LUNA <> UST mechanism, with differences in asset delivery/holding and parameterization for entry and exit flows. The proposal recommends asymmetrical parameters to split UST → BTC and BTC → UST flows and defend against oracle attacks. The parameters include BasePool, PoolRecoveryPeriod, and MinSpread. Empirical assessments are provided for exit flow parameters, indicating the available liquidity and slippage rates. Similarly, entry flow parameters are discussed based on desired replenishment of BTC in the reserve after a crisis. The section also addresses oracle attacks, including stale oracles and manipulated oracles, proposing strategies to protect against them. The implementation of daily BTC redemption caps is suggested as an additional safeguard. Community input is sought for further guidance and discussion<ref name=":3" />.
			\|-
			\|March 25th, 2022 4:47:00 AM MDT
			\|Speculation About BTC Purchases and Limited Reserves
			\|"March 25: Rumors emerge that LFG purchased bitcoin worth $125 million (2,840 BTC at the time)."<ref name="coindesk-8069" /><ref>[https://www.coindesk.com/markets/2022/03/25/bitcoin-tops-44k-amid-rumors-of-terras-lfg-accumulating-btc/ Bitcoin Tops $44K Amid Rumors of Terra's Foundation Accumulating BTC - CoinDesk] (Jun 29, 2023)</ref>
			There is speculation on Twitter and other media platforms that LFG only purchased 2,840 BTC (worth $125m USD)<ref name="greythorn-8473" />.
	\|-		\|-
	\|March 28th, 2022		\|March 28th, 2022
	\|Luna Foundation Guard Reserves Proven On Chain		\|Luna Foundation Guard Reserves Proven On Chain
	\|Do Kwon publishes confirmation of the LFG wallet address, showing that the foundation purchased over 27,000 BTC worth $1.3b USD<ref name="greythorn-8473" />.		\|Over the past six days, the Luna Foundation Guard’s bitcoin wallet address purchased more than 27,000 BTC worth roughly $1.3 billion<ref name="greythorn-8473" /><ref name="coindesk-8069" />. CoinDesk reports that Bitcoin (BTC) has experienced a surge in price, surpassing $47,000, as it attempts to reverse a bearish trend. This rally is accompanied by increased interest in alternative cryptocurrencies (altcoins), with Ether (ETH) and Solana's SOL token also seeing significant gains. The recent rise in bitcoin's price is attributed to new token accumulation, particularly by the Luna Foundation Guard, which purchased over 27,000 BTC worth approximately $1.3 billion. The Luna Foundation Guard is adding bitcoin as an additional layer of security for UST, Terra's decentralized stablecoin<ref>[https://www.coindesk.com/markets/2022/03/28/market-wrap-bitcoin-rallies-as-crypto-holders-accumulate/ Market Wrap: Bitcoin Rallies as Crypto Holders Accumulate - CoinDesk] (Jun 29, 2023)</ref>. Do Kwon publishes confirmation of the LFG wallet address, showing that the foundation purchased over 27,000 BTC worth $1.3b USD<ref name="greythorn-8473" />.
			\|-
			\|March 28th, 2022 8:38:00 PM MDT
			\|Three Arrows Capital Tweet
			\|"March 29: Kyle Davies, co-founder of influential trading firm Three Arrows Capital, tweets, “Grandpa, what was the world like when $LUNA was less than three digits?”"<ref name="coindesk-8069" /><ref>[https://twitter.com/KyleLDavies/status/1508634652797374469 Kyle Davies - "Grandpa, what was the world like when $LUNA was less than three digits?" - Twitter] (Jun 29, 2023)</ref>
			\|-
			\|March 28th, 2022 11:45:00 PM MDT
			\|All Time High For Luna
			\|CoinDesk reports that terra’s LUNA token rose 10% in the past 24 hours to set new all-time highs of almost $106<ref name="coindesk-8069" />. The price reaches $105.91. This surpasses a previous high of $104.74 set earlier in the month. The sentiment for LUNA has been growing, attributed to the Luna Foundation Guard's (LFG) purchase of over $3 billion worth of bitcoin as an additional security layer for UST. This demand for bitcoin has contributed to a recent recovery in its price. LUNA's remarkable performance is highlighted, rising by 86,215.7% from its all-time low in March 2020, and it currently holds a market capitalization of $37 billion, making it one of the top cryptocurrencies<ref>[https://www.coindesk.com/markets/2022/03/29/terras-luna-set-new-highs-of-nearly-106/ Terra’s LUNA Set New Highs of Nearly $106 - CoinDesk] (Jun 29, 2023)</ref>.
			\|-
			\|March 30th, 2023
			\|Luna Foundation Guard Bitcoin Purchase
			\|"arch 30: LFG purchases 5,773 BTC, worth $272 million, this week.
			"<ref name="coindesk-8069" /> <ref>https://www.coindesk.com/markets/2022/03/30/bitcoin-holds-steady-as-luna-foundation-guard-slows-purchases/ (Jun 29, 2023)</ref>
	\|-		\|-
	\|April 7th, 2022		\|April 7th, 2022

Azoundria: Another 30 minutes complete.

2023-06-28T19:11:24Z

Another 30 minutes complete.

@@ Line 123: / Line 123: @@
 |April 20th, 2018
 |Cyrus Younessi Concerns
-|Cyrus Younessi, as research analyst for Scalar, describes that the Luna "project isn't gonna work" and "it seems to [him] that terra suffers from the death spiral"<ref name=":2">[https://twitter.com/cyounessi1/status/1524910207838699520 Cyrus Younessi - "Over *four years* ago I was a research analyst at @scalarcapital. The Terra / $LUNA deal came across our desk and I was assigned to it because I was the DeFi guy. Here's what I had to say about the project." - Twitter] (Jun 20, 2023)</ref>. He references [[NuBits Stablecoin Depegged|the Nubits stablecoin collapse]] as a historic example.
+|Cyrus Younessi, as research analyst for Scalar, describes that the Luna "project isn't gonna work" and "it seems to [him] that terra suffers from the death spiral"<ref name="coindesk-8069" /><ref name=":2">[https://twitter.com/cyounessi1/status/1524910207838699520 Cyrus Younessi - "Over *four years* ago I was a research analyst at @scalarcapital. The Terra / $LUNA deal came across our desk and I was assigned to it because I was the DeFi guy. Here's what I had to say about the project." - Twitter] (Jun 20, 2023)</ref>. He references [[NuBits Stablecoin Depegged|the Nubits stablecoin collapse]] as a historic example.
 |-
 |April 2019
 |Terra Mainnet Live
-|The Terra mainnet went live<ref name="business2community-8059" />.
+|April: Do Kwon and several co-authors publish the Terra Money white paper<ref name="coindesk-8069" /><ref>[https://assets.website-files.com/611153e7af981472d8da199c/618b02d13e938ae1f8ad1e45_Terra_White_paper.pdf Terra White Paper - Assets.Website-Files] (Jun 28, 2023)</ref>. The Terra mainnet went live<ref name="business2community-8059" />.
 |-
+|
@@ Line 140: / Line 167: @@
 |Coin Bureau Video About UST
 |Coin Bureau publishes a video about why the Luna cryptocurrency is driven by demand for the Terra stablecoin<ref name="youtube-9355" />.
 |-
 |January 4th, 2022 6:18:50 PM MST
@@ Line 148: / Line 187: @@
 |Luna Foundation Guard Non Profit Founded
 |The Luna Foundation Guard (LFG) is officially formed as a non-profit organization to support the UST peg amid volatile market conditions<ref name="greythorn-8473" />.
 |-
 |February 22nd, 2022
 |Luna Foundation Guard Raises A Billion Dollars
-|The Luna Foundation Guard (LFG) raises $1b USD through the sale of Luna, which will be used to support the UST peg<ref name="greythorn-8473" />.
+|The Luna Foundation Guard (LFG) raises $1b USD through the sale of Luna, which will be used to support the UST peg<ref name="greythorn-8473" /><ref name="coindesk-8069" /><ref>[https://www.coindesk.com/markets/2022/02/22/foundation-focused-on-ust-stablecoin-raises-1b-in-luna-sale/ Foundation Focused on UST Stablecoin Raises $1B in LUNA Sale - CoinDesk] (Jun 28, 2023)</ref>. "eb. 22: Singapore-based Luna Foundation Guard (LFG) raises $1 billion through the sale of LUNA tokens to buy bitcoin for UST’s reserve system, with Jump Crypto and Three Arrows Capital being the lead investors.
 |-
 |March 13th, 2022 1:52:33 PM MDT
 |Terra/Luna Mentioned In Beanstalk Post
 |The Terra UST system is mentioned in a comparison with Beanstalk Finance<ref name="mirror-9832" />. TBD more thought about how this fits with the rest of the wiki.
 |-
 |March 21st, 2022 11:42:39 AM MDT
 |Mentioned in YouTube Video
 |The Terra/Luna stablecoin is mentioned in a YouTube video<ref name="youtube-8592" />. TBD more details about this. Relevance...
 |-
 |March 25th, 2022

Azoundria: Another 30 minutes complete.

2023-06-26T22:42:30Z

Another 30 minutes complete.

← Older revision		Revision as of 16:42, 26 June 2023
Line 1:		Line 1:
	{{Case Study Under Construction}}~~{{Unattributed Sources}}~~		{{Case Study Under Construction}}[[File:Terraluna.jpg\|thumb\|Terra Labs]]The Terra/Luna ecosystem consisted of two tokens. Terra was intended to maintain a "stable" value of $1 USD. Luna, on the other hand, was intended to absorb the volatility from Terra. Holders of Terra were given a blockchain-enforced right to redeem their Terra immediately for $1 worth of Luna, something which is commonly referred to in financial circles as a "death spiral bond". In addition, through the anchor protocol, any holders of Terra could stake their tokens for a guaranteed 20% annual return, creating a mechanism increasing the supply of Terra which functioned in similar fashion to a ponzi scheme. A sizable reserve of bitcoin was built up to protect the protocol, however it was far from sufficient.

	[[File:Terraluna.jpg\|thumb\|Terra Labs]]The Terra/Luna ecosystem consisted of two tokens. Terra was intended to maintain a "stable" value of $1 USD. Luna, on the other hand, was intended to absorb the volatility from Terra. Holders of Terra were given a blockchain-enforced right to redeem their Terra immediately for $1 worth of Luna, something which is commonly referred to in financial circles as a "death spiral bond". In addition, through the anchor protocol, any holders of Terra could stake their tokens for a guaranteed 20% annual return, creating a mechanism increasing the supply of Terra which functioned in similar fashion to a ponzi scheme. A sizable reserve of bitcoin was built up to protect the protocol, however it was far from sufficient.

	The exact events which lead up to the collapse are unclear, but it is suspected that a large hedge fund may have convinced the Terra/Luna CEO Do Kwon to issue them a large number of UST at a discount, then dumped these tokens to rapidly lower the value of Terra and cause the peg to be lost. Once the peg was lost, this caused a panic, which caused many investors to exercise their redemption rights, and some of these investors also sold their Luna, lowering it's price. During this time it was possible for arbitrageurs to continually purchase Terra below $1, mint $1 worth of Luna, then trade the resulting Luna back for even more Terra in an endless cycle. While this mechanism was intended to restore Terra to the $1 peg, it failed to overcome the sell pressure, as very few arbitrageurs or existing UST holders wanted to continue holding given the inherent risk.		The exact events which lead up to the collapse are unclear, but it is suspected that a large hedge fund may have convinced the Terra/Luna CEO Do Kwon to issue them a large number of UST at a discount, then dumped these tokens to rapidly lower the value of Terra and cause the peg to be lost. Once the peg was lost, this caused a panic, which caused many investors to exercise their redemption rights, and some of these investors also sold their Luna, lowering it's price. During this time it was possible for arbitrageurs to continually purchase Terra below $1, mint $1 worth of Luna, then trade the resulting Luna back for even more Terra in an endless cycle. While this mechanism was intended to restore Terra to the $1 peg, it failed to overcome the sell pressure, as very few arbitrageurs or existing UST holders wanted to continue holding given the inherent risk.
Line 7:		Line 5:
	The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.		The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.

	~~This is a global~~/~~international case not involving a specific country~~.~~<ref name~~=~~"coindesk~~-~~8069"~~ /><ref name="~~encryptedpedrotwitter~~-~~8076"~~ />		== About Do Kwon ==


			Do Kwon (Kwon Do-Hyung)<ref>[http://m.koreatimes.co.kr/pages/article.asp?newsIdx=329104 Is Terra-Luna's collapse prelude to end of cryptocurrency? - The Korea Times] (May 13, 2022)</ref> is the South Korean co-founder and CEO of Singapore-based [[wikipedia:Terraform_Labs\|Terraform Labs]], the parent company of crashed [[wikipedia:Stablecoin\|stablecoin]] [[wikipedia:Terra_(blockchain)\|TerraUSD]] and cryptocurrency Luna.<ref name=":4">[https://www.washingtonpost.com/technology/2022/06/01/terraform-labs-crypto-luna/ Their cryptocurrencies crashed the market. Now they're back at it. - Washington Post] (Nov 3, 2022)</ref>


	~~== About Do Kwon ==~~
	"Do Kwon, a South Korean who graduated from Stanford University, is the creator of TerraUSD."		"Do Kwon, a South Korean who graduated from Stanford University, is the creator of TerraUSD."

Line 101:		Line 102:

	== What Happened ==		== What Happened ==
			TerraUSD and Luna collapsed in May 2022, wiping out almost $45 billion market capitalization in one week and causing hundreds of billions in losses in the larger crypto market.<ref name=":02">[https://time.com/6177567/terra-ust-crash-crypto/ The Real Reasons Behind the Crypto Crash, and What We Can Learn from Terra's Fall - Time] (Nov 3, 2022)</ref><ref name=":4" /><ref name=":8">[https://www.bloomberg.com/news/articles/2022-05-14/terra-s-45-billion-face-plant-creates-a-crowd-of-crypto-losers Terra $45 Billion Face Plant Creates Crowd of Crypto Losers - Bloomberg] (Nov 4, 2022)</ref> Kwon faces legal and social pressure regarding his role in the Terra crash.<ref>[https://sports.yahoo.com/terra-co-founder-kwon-faces-101445471.html Terra Co-Founder Do Kwon Faces $57M Class-Action Lawsuit in Singapore - Yahoo Sports] (Nov 3, 2022)</ref>

	The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.		The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.



Line 293:		Line 297:
	\|Price Update		\|Price Update
	\|The price of UST is $0.02475 USD, and the price of Terra Classic (LUNC) is $0.0001209 USD. The supply of LUNC has now increased to 6.9 trillion (from an original supply of 3.5 billion on February 4th).		\|The price of UST is $0.02475 USD, and the price of Terra Classic (LUNC) is $0.0001209 USD. The supply of LUNC has now increased to 6.9 trillion (from an original supply of 3.5 billion on February 4th).
			\|-
			\|June 1st, 2022 9:37:46 AM MDT
			\|CoinDesk Publishes Terra/Luna Timeline
			\|CoinDesk publishes their initial summary of the Terra/Luna timeline. The article provides a detailed timeline of Terra's journey, starting as a payments app in South Korea and growing into a $60 billion crypto ecosystem before experiencing a major failure. CoinDesk closely followed the rise and fall of the Terra ecosystem, documenting Do Kwon's vision, Terra's growth as a red-hot crypto project, and Do Kwon's controversial actions on social media. Ultimately, the collapse of the ecosystem resulted in the loss of investments for many individuals. The article concludes by noting that the timeline will be updated as the story develops further<ref name="coindesk-8069" />.
	\|-		\|-
	\|June 1st, 2022 3:53:19 PM MDT		\|June 1st, 2022 3:53:19 PM MDT
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	\|GFinity Esports Article Updated		\|GFinity Esports Article Updated
	\|GFinity Esports provides an updated perspective on the Luna cryptocurrency crash, which they originally reported on when it occurred in early May<ref name=":0" />. The price of Luna has now plummeted by 99.9% to $0.000091, while the stablecoin TerraUSD (UST) has also experienced a significant decline. The crash was caused by a large amount of UST being dumped, leading to depegging and panic selling. The Luna Foundation Guard attempted to save UST from depegging by purchasing Bitcoin but was unsuccessful. Following the crash, Luna and UST pairings were delisted from several crypto exchanges, and Luna's recovery plan, including the introduction of Luna 2.0, has had mixed results. The article highlights the impact of the Luna crash on the wider cryptocurrency market and raises concerns about stablecoins, particularly algorithmic stablecoins<ref name="gfinityesports-8079" />.		\|GFinity Esports provides an updated perspective on the Luna cryptocurrency crash, which they originally reported on when it occurred in early May<ref name=":0" />. The price of Luna has now plummeted by 99.9% to $0.000091, while the stablecoin TerraUSD (UST) has also experienced a significant decline. The crash was caused by a large amount of UST being dumped, leading to depegging and panic selling. The Luna Foundation Guard attempted to save UST from depegging by purchasing Bitcoin but was unsuccessful. Following the crash, Luna and UST pairings were delisted from several crypto exchanges, and Luna's recovery plan, including the introduction of Luna 2.0, has had mixed results. The article highlights the impact of the Luna crash on the wider cryptocurrency market and raises concerns about stablecoins, particularly algorithmic stablecoins<ref name="gfinityesports-8079" />.
			\|-
			\|December 22nd, 2022 2:07:00 PM MST
			\|CoinDesk Timeline Updated
			\|The CoinDesk timeline is updated<ref name="coindesk-8069" />. TBD - Need to finish sorting this timeline and integrating.
			\|-
			\|March 23rd, 2023
			\|Do Kwon Arrested
			\|<ref>[https://www.bloomberg.com/news/articles/2022-09-15/south-korea-tightens-net-around-fallen-crypto-tycoon-do-kwon Terra Founder Kwon Under More Pressure From Crypto Collapse. On March 23 2023, Do Kwon was arrested at a Montenegro Airport - Bloomberg] (Nov 2, 2022)</ref>
	\|-		\|-
	\|April 24th, 2023 5:30:00 AM MDT		\|April 24th, 2023 5:30:00 AM MDT
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	== Technical Details ==		== Technical Details ==
			TBD

	== Total Amount Lost ==		== Total Amount Lost ==
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	"As regulators mull over their next move, the saga has offered industry players a moment of pause to reflect on what constitutes good governance and sound investing."		"As regulators mull over their next move, the saga has offered industry players a moment of pause to reflect on what constitutes good governance and sound investing."

			=== Legal Actions Against Do Kwon ===
			Citizens from multiple jurisdictions including South Korea<ref name="JAIart220518">[https://web.archive.org/web/20220518040012/https://www.joongang.co.kr/amparticle/25072092 As Billions Disappear into Thin Air, Investors Seek Legal Penalties on Kwon Despite Lack of Legal Framework for ‘Coins’ - JoongAng Ilbo] (May 18, 2022)</ref>, Singapore<ref name="CBart220518">[https://web.archive.org/web/20220518033833/https://biz.chosun.com/topics/law_firm/2022/05/18/RPYJTBGUT5GIZJ5KJSV6335DFU/?outputType=amp ‘Even Lawyers were Harmed’ Class-action Lawsuit from Harmed Luna Investors Gathers Momentum - ChosunBiz] (May 18, 2022)</ref>, and the United States<ref name=":12">[https://lawstreetmedia.com/news/tech/counsel-vie-for-lead-appointment-in-terraform-securities-litigation/ Counsel Vie for Lead Appointment in Terraform Securities Litigation - Tech - Law Street Media] (Nov 3, 2022)</ref>, are taking legal action against Do Kwon.

			=== Arrest of Do Kwon ===
			On 23 March 2023, Kwon was arrested in Montenegro, while attempting to travel to Dubai using falsified documents. Following his arrest, he was charged by a US federal grand jury of eight counts, including [[wikipedia:Securities_fraud\|securities fraud]], commodities fraud, wire fraud, and conspiracy.

	== General Prevention Policies ==		== General Prevention Policies ==
	There were a number of warnings prior to the collapse from multiple experts. No opinions were sought prior to launching the protocol and any attempts to reduce the risk through the reserve fund happened well into the protocol running. Terra was managed largely by Do Kwon himself rather than any group to balance decision making and avoid mistakes. There was no insurance available for investors to protect against protocol failure.		There were a number of warnings prior to the collapse from multiple experts. No opinions were sought prior to launching the protocol and any attempts to reduce the risk through the reserve fund happened well into the protocol running. Terra was managed largely by Do Kwon himself rather than any group to balance decision making and avoid mistakes. There was no insurance available for investors to protect against protocol failure.

Azoundria: Another 30 minutes complete.

2023-06-20T19:52:44Z

Another 30 minutes complete.

← Older revision		Revision as of 13:52, 20 June 2023
Line 7:		Line 7:
	The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.		The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.

	This is a global/international case not involving a specific country.<ref name="coindesk-8069~~" /><ref name="stablekwontwitter-8074~~" /><ref name="encryptedpedrotwitter-8076" />		This is a global/international case not involving a specific country.<ref name="coindesk-8069" /><ref name="encryptedpedrotwitter-8076" />

	== About Do Kwon ==		== About Do Kwon ==
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	!Event		!Event
	!Description		!Description
			\|-
			\|January 2018
			\|Terra Network Launch Plans
			\|"Do Kwon and Daniel Shin launch the Terra network with plans to develop Chai, an e-commerce payments application, and to create a price-stable cryptocurrency against major fiat currencies to facilitate transactions. It is supported by the Terra Alliance, 15 large e-commerce companies in Asia."<ref name="coindesk-8069" /><ref>[https://messari.io/asset/terra/profile/launch-and-initial-token-distribution/ Launch And Initial Token Distribution of Terra - Messari] (Jun 20, 2023)</ref> TBD review messari link.
			\|-
			\|April 20th, 2018
			\|Cyrus Younessi Concerns
			\|Cyrus Younessi, as research analyst for Scalar, describes that the Luna "project isn't gonna work" and "it seems to [him] that terra suffers from the death spiral"<ref name=":2">[https://twitter.com/cyounessi1/status/1524910207838699520 Cyrus Younessi - "Over four years ago I was a research analyst at @scalarcapital. The Terra / $LUNA deal came across our desk and I was assigned to it because I was the DeFi guy. Here's what I had to say about the project." - Twitter] (Jun 20, 2023)</ref>. He references [[NuBits Stablecoin Depegged\|the Nubits stablecoin collapse]] as a historic example.
	\|-		\|-
	\|April 2019		\|April 2019
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	\|July 1st, 2021 12:51:00 AM MDT		\|July 1st, 2021 12:51:00 AM MDT
	\|Do Kwon Doesn't Debate The Poor		\|Do Kwon Doesn't Debate The Poor
	\|Do Kwon responds that "I don’t debate the poor on Twitter, and sorry I don’t have any change on me for her at the moment."<ref name="stablekwontwitter-8074" />		\|Do Kwon responds to economist Frances 'Cassandra' Coppola, who is concerned about the potential of a collapse after investors panic<ref>[https://twitter.com/Frances_Coppola/status/1410481406120189952 Francis Coppola - "I have yet to see a DeFi protocol that even recognised the possibliity of a run, let alone had any means of defending against it. The algos are built on the assumption that humans never panic and stampede for the exit, ignoring the overwhelming evidence that they do." - Twitter] (Jun 19, 2023)</ref> that "I don’t debate the poor on Twitter, and sorry I don’t have any change on me for her at the moment."<ref name="stablekwontwitter-8074" />
	\|-		\|-
	\|September 14th, 2021 9:44:11 AM MDT		\|September 14th, 2021 9:44:11 AM MDT
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	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
			\|-
			\|May 11th, 2022 5:26:00 PM MDT
			\|Do Kwon Clip Shared
			\|Twitter user EncryptedPedro shares a clip of Do Kwon stating that "95% are going to die [coins], but there's also entertainment in watching companies die too" 8 days prior to the collapse<ref name="encryptedpedrotwitter-8076" />. TBD - Can we find the original clip and specific time it happened?<ref>https://twitter.com/stablekwon/status/1520764379410485248 (Jun 20, 2023)</ref>
	\|-		\|-
	\|May 12th, 2022 2:23:07 AM MDT		\|May 12th, 2022 2:23:07 AM MDT
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	\|Fortune Video Published		\|Fortune Video Published
	\|Fortune publishes a video on the Terra/Luna crash<ref name="fortune-9403">[https://fortune.com/crypto/2022/05/19/terrausd-dei-crypto-collapse-stablecoin-dollar-peg/ After Terraform's UST collapsed, stablecoin DEI did too - Fortune] (Oct 27, 2022)</ref>.		\|Fortune publishes a video on the Terra/Luna crash<ref name="fortune-9403">[https://fortune.com/crypto/2022/05/19/terrausd-dei-crypto-collapse-stablecoin-dollar-peg/ After Terraform's UST collapsed, stablecoin DEI did too - Fortune] (Oct 27, 2022)</ref>.
			\|-
			\|May 12th, 2022 6:31:00 PM MDT
			\|Cyrus Younessi Shares Tweet
			\|Cyrus Younessi shares his original discussions on the Terra project<ref name=":2" />. It's unclear if he had anything to share prior to the collapse. "I've actually suffered some copium over the years because of Terra's "success." I'm not happy about how it turned out but I am pleased to be vindicated.
			<ref>[https://twitter.com/cyounessi1/status/1524910833570021392 Cyrus Younessi - "I've actually suffered some copium over the years because of Terra's "success." I'm not happy about how it turned out but I am pleased to be vindicated." - Twitter] (Jun 20, 2023)</ref>"
	\|-		\|-
	\|May 13th, 2022 4:15:00 PM MDT		\|May 13th, 2022 4:15:00 PM MDT

Azoundria: Another 30 minutes complete.

2023-06-16T18:50:52Z

Another 30 minutes complete.

← Older revision		Revision as of 12:50, 16 June 2023
Line 7:		Line 7:
	The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.		The Terra peg was never restored, and as a result the supply of Luna continued to grow rapidly, causing the price to fall rapidly. The ability to convert Luna into other coins was also severly limited, and this further accelerated the exit. The entire $50b+ ecosystem built around Terra/Luna vanished to become nearly worthless, causing investors a near total loss of all funds.

	This is a global/international case not involving a specific country.<ref name="coindesk-8069~~" /><ref name="nytimes-8070" /><ref name="novogratztwitter-8071" /><ref name="stablekwontwitter-8072" /><ref name="businessinsidermarkets-8073~~" /><ref name="stablekwontwitter-8074~~" /><ref name="stablekwontwitter-8075~~" /><ref name="encryptedpedrotwitter-8076" />		This is a global/international case not involving a specific country.<ref name="coindesk-8069" /><ref name="stablekwontwitter-8074" /><ref name="encryptedpedrotwitter-8076" />

	== About Do Kwon ==		== About Do Kwon ==
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	“It’s the cult of personality — the bombastic, arrogant, Do Kwon attitude — that sucks people in,” said Brad Nickel, who hosts the cryptocurrency podcast “Mission: DeFi.”		“It’s the cult of personality — the bombastic, arrogant, Do Kwon attitude — that sucks people in,” said Brad Nickel, who hosts the cryptocurrency podcast “Mission: DeFi.”

			<ref name="stablekwontwitter-8075" /><ref name=":1">[https://twitter.com/stablekwon/status/1515505281773744130 Do Kwon - "If i ever have a son I shall name him Stable Stable Kwon" - Twitter] (Jun 16, 2023)</ref>.<blockquote>
			Baby Luna

			My dearest creation named after my greatest invention

	The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.		If i ever have a son I shall name him Stable

			Stable Kwon</blockquote>The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

	Include:		Include:
Line 111:		Line 116:
	\|Terra Mainnet Live		\|Terra Mainnet Live
	\|The Terra mainnet went live<ref name="business2community-8059" />.		\|The Terra mainnet went live<ref name="business2community-8059" />.
			\|-
			\|
			\|
			\|<ref>[https://web.archive.org/web/20210701080350/https://twitter.com/Frances_Coppola/status/1410482931940868100 Frances Coppola - "Raising interest rates does not stop bank runs. You literally do not know anything about this, do you?" - Twitter Archive July 1st, 2021 2:03:50 AM MDT] (Jun 16, 2023)</ref>
			\|-
			\|July 1st, 2021 12:51:00 AM MDT
			\|Do Kwon Doesn't Debate The Poor
			\|Do Kwon responds that "I don’t debate the poor on Twitter, and sorry I don’t have any change on me for her at the moment."<ref name="stablekwontwitter-8074" />
	\|-		\|-
	\|September 14th, 2021 9:44:11 AM MDT		\|September 14th, 2021 9:44:11 AM MDT
	\|Coin Bureau Video About UST		\|Coin Bureau Video About UST
	\|Coin Bureau publishes a video about why the Luna cryptocurrency is driven by demand for the Terra stablecoin<ref name="youtube-9355" />.		\|Coin Bureau publishes a video about why the Luna cryptocurrency is driven by demand for the Terra stablecoin<ref name="youtube-9355" />.
			\|-
			\|January 4th, 2022 6:18:50 PM MST
			\|Mike Novogratz Is A Lunatic
			\|Mike Novogratz proudly shows off his new Luna tattoo, courtesy of Smith Street Tattoos<ref name="novogratztwitter-8071" />.
	\|-		\|-
	\|January 9th, 2022		\|January 9th, 2022
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	\|The Luna Foundation Guard has a peak bitcoin reserve of 39,897 BTC, which is presently valued at $1.7b USD<ref name="greythorn-8473" />.		\|The Luna Foundation Guard has a peak bitcoin reserve of 39,897 BTC, which is presently valued at $1.7b USD<ref name="greythorn-8473" />.
	\|-		\|-
	\|7:26 PM ~~· Apr 16~~, 2022		\|April 16th, 2022 7:26:00 PM MDT
	\|		\|Baby Luna Named
	\|<ref name="stablekwontwitter-~~8075~~" /> ~~TBD~~		\|Do Kwon announces that he is naming his daughter "Baby Luna" after his "greatest invention"<ref name="stablekwontwitter-8075" />, and furthermore if he has a son, he will name him "Stable"<ref name=":1" />.
			\|-
			\|April 18th, 2022 8:44:00 AM MDT
			\|Response To Wall Street Journal Article
			\|Do Kwon responds to a Wall Street Journal article "Cutting-Edge Crypto Coins Tout Stability. Critics Call Them Dangerous"<ref name="stablekwontwitter-8072" />. He also reports that nobody at the Wall Street Journal reached out to him for an interview<ref>[https://twitter.com/stablekwon/status/1516087083722768387 Do Kwon - "Nobody asked" - Twitter] (Jun 16, 2023)</ref>.
	\|-		\|-
	\|April 19th, 2022		\|April 19th, 2022
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	\|Business 2 Community Article		\|Business 2 Community Article
	\|<ref>[https://web.archive.org/web/20220512082307/https://www.business2community.com/crypto-news/what-is-terra-luna-and-why-did-it-crash-02493117 What is Terra Luna? Why did it Crash 99%? - Business 2 Community Archive May 12th, 2022 2:23:07 AM MDT] (Apr 14, 2023)</ref><ref name="business2community-8059" /> TBD explore more.		\|<ref>[https://web.archive.org/web/20220512082307/https://www.business2community.com/crypto-news/what-is-terra-luna-and-why-did-it-crash-02493117 What is Terra Luna? Why did it Crash 99%? - Business 2 Community Archive May 12th, 2022 2:23:07 AM MDT] (Apr 14, 2023)</ref><ref name="business2community-8059" /> TBD explore more.
			\|-
			\|May 12th, 2022 9:41:00 AM MDT
			\|Markets Insider Article
			\|Markets Insider reports that TerraUSD founder Do Kwon is facing criticism as his cryptocurrency projects, TerraUSD and Luna, are experiencing a collapse in confidence and value. Kwon has a history of dismissing critics by labeling them "poor." Recently, he mocked an economist who criticized TerraUSD's design, stating that he doesn't "debate with poor people." The TerraUSD stablecoin has fallen significantly, with luna token plunging 99%. Kwon's habit of putting down detractors is garnering attention as his projects face turmoil. Analysts are expressing skepticism about the legitimacy of these assets, emphasizing the preference for real, tangible assets amid disappearing liquidity and inflation<ref name="businessinsidermarkets-8073" />.
	\|-		\|-
	\|May 12th, 2022		\|May 12th, 2022
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	\|How It Happened Episode Video		\|How It Happened Episode Video
	\|The YouTube "How It Happened" channel published a video with more information on the Luna/Terra collapse. Last week witnessed a major market crash in the cryptocurrency world, impacting Bitcoin, Ethereum, Coinbase, and Binance. The crash was triggered by the stablecoin Terra USD (UST) losing its peg to the US dollar, which caused its non-stable coin partner, Luna, to plummet by 99% within a few days. The crash resulted in around $200 billion being wiped off the total value of all cryptocurrencies. Notably, popular YouTuber KSI lost nearly $3 million in the Terra Luna crash. Terra is a stablecoin linked to the dollar through algorithms and game theory, while Luna acts as its satellite asset. However, a major sell-off and withdrawal attempts overwhelmed the algorithms, leading to the Luna Foundation selling its Bitcoin reserves to save the stablecoin, causing a ripple effect on the entire market. The Terra Luna crash raises concerns about the stability and reliability of stablecoins and highlights the potential risks associated with algorithmic stablecoins. The incident also questions the legitimacy and sustainability of the cryptocurrency market as a whole, drawing parallels to a Ponzi scheme. The future of Terra Luna and its ability to regain trust and stability will depend on its response to the crisis and its ability to prevent similar incidents in the future<ref name="youtube-8083" />.		\|The YouTube "How It Happened" channel published a video with more information on the Luna/Terra collapse. Last week witnessed a major market crash in the cryptocurrency world, impacting Bitcoin, Ethereum, Coinbase, and Binance. The crash was triggered by the stablecoin Terra USD (UST) losing its peg to the US dollar, which caused its non-stable coin partner, Luna, to plummet by 99% within a few days. The crash resulted in around $200 billion being wiped off the total value of all cryptocurrencies. Notably, popular YouTuber KSI lost nearly $3 million in the Terra Luna crash. Terra is a stablecoin linked to the dollar through algorithms and game theory, while Luna acts as its satellite asset. However, a major sell-off and withdrawal attempts overwhelmed the algorithms, leading to the Luna Foundation selling its Bitcoin reserves to save the stablecoin, causing a ripple effect on the entire market. The Terra Luna crash raises concerns about the stability and reliability of stablecoins and highlights the potential risks associated with algorithmic stablecoins. The incident also questions the legitimacy and sustainability of the cryptocurrency market as a whole, drawing parallels to a Ponzi scheme. The future of Terra Luna and its ability to regain trust and stability will depend on its response to the crisis and its ability to prevent similar incidents in the future<ref name="youtube-8083" />.
			\|-
			\|May 18th, 2022 3:00:43 AM MDT
			\|The New York Times Article
			\|The New York Times publishes an article on the collapse about "How a Trash-Talking Crypto Founder Caused a $40 Billion Crash"<ref name="nytimes-8070" />.
	\|-		\|-
	\|May 18th, 2022 10:15:00 AM MDT		\|May 18th, 2022 10:15:00 AM MDT
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	<ref name="financefeeds-8067">[https://financefeeds.com/understanding-terra-2-0-why-luna-deserves-another-chance/ Understanding Terra 2.0: Why LUNA deserves another chance - Finance Feeds] (Jun 19, 2022)</ref>		<ref name="financefeeds-8067">[https://financefeeds.com/understanding-terra-2-0-why-luna-deserves-another-chance/ Understanding Terra 2.0: Why LUNA deserves another chance - Finance Feeds] (Jun 19, 2022)</ref>
	<ref name="benzinga-8068">[https://www.benzinga.com/money/why-did-terra-luna-crash/ Why Did Terra Luna Crash? - Benzinga] (Jun 19, 2022)</ref>		<ref name="benzinga-8068">[https://www.benzinga.com/money/why-did-terra-luna-crash/ Why Did Terra Luna Crash? - Benzinga] (Jun 19, 2022)</ref>
	<ref name="coindesk-8069">[https://www.coindesk.com/learn/the-fall-of-terra-a-timeline-of-the-meteoric-rise-and-crash-of-ust-and-luna/ The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA] (Jun 19, 2022)</ref>		<ref name="coindesk-8069">[https://www.coindesk.com/learn/the-fall-of-terra-a-timeline-of-the-meteoric-rise-and-crash-of-ust-and-luna/ The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA - CoinDesk] (Jun 19, 2022)</ref>
	<ref name="nytimes-8070">https://www.nytimes.com/2022/05/18/technology/terra-luna-cryptocurrency-do-kwon.html (Jun 19, 2022)</ref>		<ref name="nytimes-8070">[https://www.nytimes.com/2022/05/18/technology/terra-luna-cryptocurrency-do-kwon.html How a Trash-Talking Crypto Founder Caused a $40 Billion Crash - The New York Times] (Jun 19, 2022)</ref>
	<ref name="novogratztwitter-8071">[https://twitter.com/novogratz/status/1478535972560195585 @~~novogratz~~ Twitter] (Jun 19, 2022)</ref>		<ref name="novogratztwitter-8071">[https://web.archive.org/web/20220105011850/https://twitter.com/novogratz/status/1478535972560195585 Mike Novogratz - "I’m officially a Lunatic!!! Thanks @stablekwon And thank you my friends at Smith Street Tattoos." - Twitter Archive January 4th, 2022 6:18:50 PM MST] (Jun 19, 2022)</ref>
	<ref name="stablekwontwitter-8072">[https://twitter.com/stablekwon/status/1516065087249088512 ~~@stablekwon~~ Twitter] (Jun 19, 2022)</ref>		<ref name="stablekwontwitter-8072">[https://twitter.com/stablekwon/status/1516065087249088512 Do Kwon - "Wtf is Paxos" - Twitter] (Jun 19, 2022)</ref>
	<ref name="businessinsidermarkets-8073">[https://markets.businessinsider.com/news/currencies/terra-usd-ust-luna-do-kwon-poor-critics-crypto-crash-2022-5 TerraUSD Founder Do Kwon Mocked Critics for Being 'Poor' Before UST Crash] (Jun 19, 2022)</ref>		<ref name="businessinsidermarkets-8073">[https://markets.businessinsider.com/news/currencies/terra-usd-ust-luna-do-kwon-poor-critics-crypto-crash-2022-5 TerraUSD Founder Do Kwon Mocked Critics for Being 'Poor' Before UST Crash - Business Insider Markets] (Jun 19, 2022)</ref>
	<ref name="stablekwontwitter-8074">[https://twitter.com/stablekwon/status/1410491186196795398 ~~@stablekwon~~ Twitter] (Jun 19, 2022)</ref>		<ref name="stablekwontwitter-8074">[https://twitter.com/stablekwon/status/1410491186196795398 Do Kwon - "I don’t debate the poor on Twitter, and sorry I don’t have any change on me for her at the moment." - Twitter] (Jun 19, 2022)</ref>
	<ref name="stablekwontwitter-8075">[https://twitter.com/stablekwon/status/1515501798442008577 Do Kwon (stablekwon) - "Baby Luna My dearest creation named after my greatest invention" - Twitter] (Jun 19, 2022)</ref>		<ref name="stablekwontwitter-8075">[https://twitter.com/stablekwon/status/1515501798442008577 Do Kwon (stablekwon) - "Baby Luna My dearest creation named after my greatest invention" - Twitter] (Jun 19, 2022)</ref>
	<ref name="encryptedpedrotwitter-8076">[https://twitter.com/EncryptedPedro/status/1524531474237640706 <nowiki>EncryptedPedro - "Do Kwon: "95% are going to die [coins], but there's also entertainment in watching companies die too" 8 days ago. Ironic." - Twitter</nowiki>] (Jun 19, 2022)</ref>		<ref name="encryptedpedrotwitter-8076">[https://twitter.com/EncryptedPedro/status/1524531474237640706 <nowiki>EncryptedPedro - "Do Kwon: "95% are going to die [coins], but there's also entertainment in watching companies die too" 8 days ago. Ironic." - Twitter</nowiki>] (Jun 19, 2022)</ref>

Azoundria: Another 30 minutes complete.

2023-06-15T22:57:22Z

Another 30 minutes complete.

Show changes