When Andre Cronje, the “Godfather of DeFi”, quit the DeFi field in March, many recalled his warnings that crypto needs regulation and that many DeFi protocols are experimental in nature.
This has been proven many times, but not as intensely as Terra’s $45 – $65 billion (direct and indirect) collapse.
However, where is the line drawn between cutting-edge innovation and defrauding? Is it likely that DeFi complexity inherently obfuscates potential fraud cases? Nassim Taleb, “The Black Swan” author, trader, and risk analyst, posits that Do Kwon is the Bernie Madoff of crypto.
Is Do Kwon Really the Madoff of Crypto?
Having since died in federal prison, Bernie Madoff had run an investment Ponzi scheme for decades before he was caught. How does he compare to Do Kwon, the founder of Terraform Labs?
The similarity between Madoff and Do Kwon’s Terra is striking. Both promised unusually high returns for investors. In the case of Terra’s Anchor protocol, it was up to 20% yields…
