At this point, it’ll likely come as no surprise that the CEO of Terra creator Terraform Labs, Do Kwon, was also behind another failed algorithmic stablecoin called “Basis Cash”, which launched on ethereum in 2020.
Basis Cash (BAC) also “sought to maintain a $1 peg through code, not collateral,” CoinDesk, who broke the story, wrote yesterday. BAC ultimately failed, the report notes, never getting to dollar parity and eventually crashing to “well below 1 cent” where it trades now.
CoinDesk called stablecoin Terra’s recent collapse “history repeating”.
Hyungsuk Kang, a former engineer at Terraform Labs, confifmed that Basis Cash was a side project from some of Terra’s creators, including Kwon. A second anonymous employee referred to Kwon as pseudonymous BAC founder “Rick Sanchez”.
Kang told CoinDesk: “Basis Cash wasn’t tested at the moment, and we weren’t even sure” it would work, Kwon “wanted to
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