The Chopping Block: Kevin Zhou on Why He Knew Terra Would Crash - Ep.353

Unchained

English - May 19, 2022 08:00 - 1 hour - ★★★★★ - 1.2K ratings
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Previous Episode: Why Terra Collapsed and Whether an Algo Stablecoin Can Ever Succeed - Ep.352

Next Episode: The 5 Biggest Lessons From Terra/Luna's Collapse, According to Tascha Che - Ep.354

Welcome to The Chopping Block! Crypto insiders Haseeb Qureshi, Tom Schmidt, and Tarun Chitra chop it up about the latest news in the digital asset industry. On this episode, Kevin Zhou, the CEO of Galois Capital and long-time critic of UST, also joined the conversation. Show topics:

the UST depeg and Terra collapse

Kevin on what it was like being one of the earliest naysayers of LUNA

why Kevin believes that UST initially depegged and became a “fear cascade”

how Galois Capital traded the UST depeg, from shorting LUNA to keeping their UST in Anchor until the last moment

why Kevin was disappointed in the lack of transparency in how Luna Foundation Guard attempted to defend the UST peg

the implications of UST’s collapse across the crypto and traditional financial markets

whether Terra’s decline will lead to more regulation in the crypto industry

why Anchor was the “cancer” of the Terra system

why VCs are reticent to say something bad about protocols they don’t believe in

why grifting is so much more prevalent in crypto

what Jump Trading had to do with the Terra collapse

the difference between the way trading and VC firms interact with crypto

the issues with the Terra 2 proposal without UST

which chains are receiving the people leaving the Terra ecosystem

why Haseeb compared the collapse of UST to the collapse of the Soviet Union

who Kevin believes should be reimbursed in the aftermath of the UST collapse

how political considerations might affect how Terra continues to develop going forward

why Terra NFTs were skyrocketing during the Terra meltdown

whether crypto is in a bear or bull market

Hosts

Haseeb Qureshi, managing partner at Dragonfly Capital

https://twitter.com/hosseeb

Tom Schmidt, general partner at Dragonfly Capital

https://twitter.com/tomhschmidt

Tarun Chitra, managing partner at Robot Ventures

https://twitter.com/tarunchitra

Robert Leshner, founder of Compound

https://twitter.com/rleshner

Guest

Kevin Zhou, CEO of Galois Capital

https://www.linkedin.com/in/kevin-zhou-82938324/

Previous Unchained Coverage

Nic Carter, Erik Voorhees, and Eric Wall on the collapse of UST

https://unchainedpodcast.com/why-terra-collapsed-and-whether-an-algo-stablecoin-can-ever-succeed/

Do Kwon on backing UST with BTC

https://unchainedpodcast.com/do-kwon-is-backing-ust-with-bitcoin-and-heres-what-else-he-is-building/

Kevin Zhou on the risk of UST’s death spiral

https://unchainedpodcast.com/heres-why-usdn-depegged-from-the-dollar-and-why-ust-might-too/

Jon Wu on how Terra got depegged:

https://unchainedpodcast.com/did-someone-deliberately-attack-terra-luna-to-kick-off-a-death-spiral/

Do Kwon on The Chopping Block

https://www.youtube.com/watch?v=0xl8u7-KVwM

Haseeb’s summary of the Terra collapse:
https://medium.com/dragonfly-research/the-reign-of-terra-the-rise-and-fall-of-ust-208dabbc8e6e

Jon Wu’s write-up on the UST Depeg

Article: https://www.notboring.co/p/terra-to-the-moon-and-back

Thread: https://twitter.com/jonwu_/status/1523793482850050048?s=20&t=lvB1zdz98wu5TE5emh4fCw

Terra Background Info

Twitter: https://twitter.com/terra_money

UST Mechanics: https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c

UST Bank Run: https://www.wsj.com/articles/crash-of-terrausd-shakes-crypto-there-was-a-run-on-the-bank-11652371839

Speculation of a deliberate attack: https://onchainwizard.substack.com/p/how-to-make-800m-in-crypto-soros?s=r

Do Kwon’s Proposed Terra’s Revival: https://www.coindesk.com/tech/2022/05/13/do-kwon-proposes-restart-of-terra-blockchain-as-ust-luna-plummet/

Anchor: https://twitter.com/anchor_protocol

Terra 2.0: https://unchainedpodcast.com/do-kwon-has-a-new-plan-again/

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the UST depeg and Terra collapse
Kevin on what it was like being one of the earliest naysayers of LUNA
why Kevin believes that UST initially depegged and became a “fear cascade”
how Galois Capital traded the UST depeg, from shorting LUNA to keeping their UST in Anchor until the last moment
why Kevin was disappointed in the lack of transparency in how Luna Foundation Guard attempted to defend the UST peg
the implications of UST’s collapse across the crypto and traditional financial markets
whether Terra’s decline will lead to more regulation in the crypto industry
why Anchor was the “cancer” of the Terra system
why VCs are reticent to say something bad about protocols they don’t believe in
why grifting is so much more prevalent in crypto
what Jump Trading had to do with the Terra collapse
the difference between the way trading and VC firms interact with crypto
the issues with the Terra 2 proposal without UST
which chains are receiving the people leaving the Terra ecosystem
why Haseeb compared the collapse of UST to the collapse of the Soviet Union
who Kevin believes should be reimbursed in the aftermath of the UST collapse
how political considerations might affect how Terra continues to develop going forward
why Terra NFTs were skyrocketing during the Terra meltdown
whether crypto is in a bear or bull market

Hosts

Haseeb Qureshi, managing partner at Dragonfly Capital
https://twitter.com/hosseeb
Tom Schmidt, general partner at Dragonfly Capital
https://twitter.com/tomhschmidt
Tarun Chitra, managing partner at Robot Ventures

https://twitter.com/tarunchitra
Robert Leshner, founder of Compound