One Anchor Dev claims that he warned Do Kwon over the 20% interest rate and alleged that the platform was only designed to offer a rate of 3.6% but this all changed at the last minute so let’s read more today in our latest cryptocurrency news.
Anchor Protocol was designed to offer an interest rate of 3.6% but it was dialed up to 20% a week before the release to attract more investors as the anchor dev explained in an interview with JTBC:
“I did not know that this would go out with such a high-interest rate. Set to 20% just a week before the release. I thought I was going to collapse from the beginning. (I designed it), but it collapsed 100%.”
Mr. B, the anchor dev, said the platform was only created to offer an interest rate of 3.6% which was a key component of keeping the system stable as it took into account all available funds in the war chest of the platform. The developer revealed tht a week before the launch, the developers found that the plans were changed and gave investors access to a high 20% interest for locking up their TerraUSD classic stablecoin in Anchor instead. The JBTC claimed that it obtained internal design documents that were made by Terraform Labs that wrote about attracting investors with the high-interest rates.
The developer said he tried to take the issue with the Terra Luna founder Kwon Do-Hyung ahead of the launch in April 2019:
“Just before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered, but it was not accepted.”
The dramatic fall of the Terra Classic and the UST stablecoin, led to plans by the government to launch a new Digital Asset Committee to serve as the watchdog over the country’s industry responsible for policy preparation and supervision. Do Kwon was summoned to attend a hearing on the matter back in May and he also got himself into trouble after court documents showed that he dissolved Terraform Labs days before the crash.
The South Korean authorities issued subpoenas to employees of Terraform Labs that were looking into whether there was intentional price manipulation and whether the tokens are going through proper listing procedures. Despite this, the Terra co-founder managed to relaunch the network by the end of May with a new chain called Terra 2.0 also known as Pheonix which was aimed at reviving the fallen LUNA.
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