How a Trash-Talking Crypto Bro Caused a $40 Billion Crash – The New York Times

“Do Kwon, a trash-talking entrepreneur from South Korea, called the cryptocurrency he created in 2018 “my greatest invention.” In countless tweets and interviews, he trumpeted the world-changing potential of the currency, Luna, rallying a band of investors and supporters he proudly referred to as “Lunatics.”

Mr. Kwon’s company, Terraform Labs, raised more than $200 million from investment firms such as Lightspeed Venture Partners and Galaxy Digital to fund crypto projects built with the currency, even as critics questioned its technological underpinnings. Luna’s total value ballooned to more than $40 billion, creating a frenzy of excitement that swept up day traders and start-up founders, as well as wealthy investors.

Mr. Kwon dismissed concerns with a taunt: “I don’t debate the poor.”

But last week, Luna and another currency that Mr. Kwon developed, TerraUSD, suffered a spectacular collapse. Their meltdowns had a domino effect on the rest of the cryptocurrency market, tanking the price of Bitcoin and accelerating the loss of $300 billion in value across the crypto economy. This week, the price of Luna remained close to zero, while TerraUSD continued to slide.”

David Lindsay Jr.
Hamden, CT | NYT comment:
It appears to be just a ponzi scheme, and like bitcoin, has a large carbon footprint. Therefore, all these products should probably be banned. I am a successful investor, and one important rule is, if you can’t understand it, don’t invest in it. I did try to understand bitcoin, and it apparently only has anonymous record keeping with an extraordinarily high carbon footprint. It is a haven for gangsters and corrupt officials. What could be worse than owning a share in a high carbon footprint virtual asset, that doesn’t have any oil or gas or coal to sell.
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