Why Crypto Bros Keep Proving Jamie Dimon Right | Crypto

Why Crypto Bros Keep Proving Jamie Dimon Right

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-Do Kwon is not on the run. We know that because the cryptocurrency founder said so. Singapore authorities announced that hes no longer in their country, a South Korean court issued a warrant for his arrest, and Interpol put out a Red Notice. But that doesnt mean hes ready to reveal his whereabouts, or his legal strategy to fight the charges.
-Kwons outfit is called Terraform Labs. Its one of dozens of blockchain startups built to reinvent the global financial system and challenge the fiat-based structure which has central banks at its core. Its spin on the theme was to build a stablecoin on top of its Terra blockchain.
-Instead of being backed by holdings of a fiat currency like the more-famous Tether which claims to hold one US dollar for each Tether minted TerraUSD achieves price-stability via an elastic money supply. In its White Paper, the stablecoins instigators note that the extreme volatility of Bitcoins price is Terras raison detre.
-At the core of how the Terra Protocol solves these issues is the idea that a cryptocurrency with an elastic monetary policy would maintain a stable price, retaining all the censorship resistance of Bitcoin, and making it viable for use in everyday transactions.
-Theres just one, slight, $60 billion problem. The algorithm didnt work. The peg didnt hold. TerraUSDs price collapsed, as did that of the associated Luna token. And holders of these tokens got wiped out.
-That was in May, and now Kwon is on the lam. Except, he says hes not. And he also says its nobodys business where he is, unless youre a friend, plan to meet, or are playing a location-based game (that last one is a joke, we think).
-Running a bad business isnt against the law. Losing $60 billion of customers money in itself is also not a crime. But authorities in Seoul are convinced he did something wrong, and seek to charge Kwon and five others for breaches of capital markets laws.
-Having failed to get him to front up, South Korea went one further and asked Interpol to help, which they did, requesting law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
-This international game of cat and mouse isnt a good look for Kwon, or crypto executives anywhere.
-For more than a decade, proponents have fought to shake off cryptocurrencys image as a frontier for criminals, digital blackmailers, drug lords and international arms smugglers. Yet every time the head of a cryptocurrency outfit legitimate or not

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