Here’s how Terra founder meddled with Anchor’s interest rate

Sahana Kiran
Source – Unsplash

The downfall of Terra was weeks ago, but the sound waves from its crash continue to linger around the crypto market. As new revelations have been coming to light, the community’s trust in Do Kwon and Luna 2.0 continue to fade. Further adding to this, an employee from the Anchor protocol decided to speak up about how Kwon tampered with the interest rates just a week before its launch.

A South Korean news portal managed to get in touch with an employee of the Anchor protocol who revealed that the Anchor protocol was expected to go live with a 3.6 percent interest rate. However, a week prior to its launch, the Terra founder veered in and changed the rates to 20 percent.

Since the platform was originally formulated to deliver an interest of just 3.6 percent. But Kwon’s move caused havoc in the market. The employee even urged the Terra founder to lower the interest rate. But Kwon reportedly paid no heed. The employee added,

“Just before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered, but it was not accepted.”

Time and again, post the crash, several employees of the Terra network came forward and pointed out that they predicted the collapse of the network. This employee did too. He added,

“I thought I was going to collapse from the beginning. (I designed it), but it collapsed 100%”

Terra co-founder shuns fraud allegations

Contrary to the afore seen claims, the co-founder of Terra, Daniel Shin claimed that he wasn’t aware of any deficiencies in the blockchain’s algorithm.

Shin reportedly said that Terraform Labs had no intention of duping its users. He further went on to deny all allegations surrounding fraud against the network.

However, declarations from the firm’s employees reveal how the collapse was foreseen and could have been avoided. It seems like the aforementioned statements would further dement the chances of Kwon and Terra 2.0 to regain the community’s trust.