Daily Flash | Do Kwon used to be another founder of the zeroisation algorithmic stablecoin；the total supply of stablecoin decreased for the first time

Today's Topic - Do Kwon is one of the founders of the zeroisation algorithmic stablecoin project Basis Cash

On May 11, it was revealed that Do Kwon, founder of Terra and CEO of Terraform Labs, was one of the anonymous co-founders behind the failed zeroisation algorithmic stablecoin project Basis Cash.

The project's algorithmic stablecoin BAC failed to re-anchor with the US dollar after it was decoupled in early 2021. Presently, it is worth less than $1 cent.

According to Hyungsuk Kang, a former engineer of Terraform Labs (TFL) , Basis Cash was actually founded by some early founding members of Terra, including himself and Do Kwon (alias Rick Sanchez).

Now the terra team "repeats its mistakes" again. Is UST going to return to zero?

Today's Chart - The total supply of stablecoin fell for the first time

After reaching its peak in March 2022, the total supply of stablecoin began to show a downward trend.

With the current disasters of LUNA and UST and the superposition of a rapidly rising interest rate environment, geopolitics, war and other uncertain factors, people began to reduce their risks by selling stablecoins.

Google trend data show that people's interest in Bitcoin has been low recently. The latest record high in November 2021 was mainly due to the admission of institutions, while the interest of retail investors has been at a very low level since May last year.

In the long run, we still see the Bitcoin development and other high-quality cryptocurrencies, but currently, we can't ignore all these simultaneous "catastrophic events".

Today's Influencer - The SEC may have started investigating UST

On May 12, two former SEC lawyers told the media that the Securities and Exchange Commission (SEC) may have been investigating what happened to the algorithmic stablecoin UST in the past week.

Philip Moustakis, a lawyer who left the law enforcement department of the SEC to join the law firm Seward & Kissel in 2019, said that the SEC had sued Terraform Labs and it had every reason to investigate UST. He explained: even if there is a question about whether UST is a security, even if the designed stablecoin may avoid the application of federal securities law, subsequent transactions may bring it back into the jurisdiction of the Securities and Exchange Commission. A spokesman for the SEC also stated that the SEC does not comment on the existence of a possible investigation, and the regulator declined to comment on TerraUSD.

Previously, the SEC filed a lawsuit against Terraform Labs and its CEO Do Kwon in November 2021 to investigate whether Terraform labs, Kwon or other companies violated federal securities laws, including unregistered securities sales, unregistered brokers or dealers, and unregistered investment companies engaged in securities trading.

Hot events yesterday - #LUNA plummeted by more than 90%, #stablecoin supervision, #MicroStrategy may add collateral

LUNA fell below $5 after plunging more than 90%

Author: Gate.io Researcher: Byron B. Translator: Joy Z.
* This article represents only the views of the researcher and does not constitute any investment advice.*Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.