Kyle Davies on Terra Luna collapse
From From $3B Collapse to Meme Coin Kings: Zhu Su & Kyle Davies · · Handsome Finance
“I think that generally we thought it it was good and could work I think that jump felt similarly uh I think that um the way that the particular way that it failed was quite um quite unfortunate because it was was that you had to have a number of things be true right you had to have there be a very weak method for restructuring right because for for instance when us was already 20 cents you know like a crisis prize is actually relatively um cheap to let's say uh buy and then and then bail and then bail out the protocol right but the problem is that you can't actually turn off the uh there's no module to turn off the minting so in other words because it was a little bit too decentralized he that there was no kill kill switch basically so essentially the protocol was minting Luna oh sorry it was basically minting uh new Luna tokens uh to buy us so it's sells Luna buys USD to try to maintain the peg so the protocol essentially infinite mints right because that that's just going in the background because it sees that US is below the price okay so and so essentially you know if this had been halted if this has had an emergency Halt and then it restructured the us into fresh Luna Supply that would have been fine because Luna even as a mem coin as the time can be worth a lot of money because it's listed everywhere had this you know people forget but Luna was $10 $20 before they announced this us thing like so cuz it had had different I mean this um anchor protocol thing so I think that the do is kind of a underestimation of how quickly it would it would unravel in that sense and there's also not enough kill switches built in given that it is an experiment you you actually need kill switches”
On , Kyle Davies, Cofounder at Three Arrows Capital, spoke about Terra Luna collapse during From $3B Collapse to Meme Coin Kings: Zhu Su & Kyle Davies on Handsome Finance.
About Kyle Davies
Kyle Davies, co-founder of the bankrupt crypto hedge fund Three Arrows Capital (3AC), has given several interviews in late 2024. In a December 2024 appearance on the Future Money podcast, Davies stated he felt "awesome" about 3AC, describing it as a "10-year fund" with a "pretty wild 10-year period of success." He declined to apologize for the fund's bankruptcy, saying "companies go bankrupt, almost every company goes bankrupt." Davies said he and his co-founder Su Zhu are "still young" and "still think we can add value in various ways," including by telling "the next Three Arrows how to do things better when they go bankrupt." He also commented on the current crypto market, stating he is "very bullish" and that it is giving him "late 2019 / early 2020 vibes." Davies has also discussed his legal situation and current location. He stated he would not return to Singapore "immediately" to face potential jail time, but said "these things resolve at some point — there are settlements." Davies claimed he is in Europe and said he does not see a reason he could not return to the United States, where his family is, but has not done so. He attributed his and Zhu's failure to appear for a court date to their lawyers, saying "maybe we should sack our lawyers for not informing us about the court date." Davies also discussed his involvement in the failed project OpenX, which he described as an adviser role, and a new project called OX.