Terraform Labs CEO was behind the failed Basis Cash stablecoin
Terraform Labs (TFL) CEO Do Kwon was reportedly one of the co-founders of the failed algorithmic stablecoin Basis Cash (BAC), founded by the anonymous "Rick" – presumably Kwon and "Morty" – the second co-founder.
Launched in late 2020, BAC just like UST sought to maintain a $1 peg through code, not collateral. On its website, Basis Cash describes itself as a "Decentralized Stablecoin with an Algorithmic Central Bank."
In January 2021, the price of BAC sank below the $1 level, which it never reached again. At its peak, the market cap of BAC was $93 million.
Former TFL engineer Hyungsuk Kang said that Basis Cash was a side project from some of Terra’s early creators, including himself and Kwon.
"Basis Cash wasn’t tested at the moment, and we weren’t even sure" it would work, Kang said. Kwon "wanted to just test it out. He said that this was a pilot project for doing that."
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