Everyone linked with the Terraform Labs is not living in denial about the collapse of the Terra blockchain in its current form and the exit of the legal team is not deterring Do Kwon from proposing a way forward to revive the protocol.
The in-house legal counsel at Terraform Labs, the blockchain startup behind the UST stablecoin and LUNA coin has silently resigned from the company. The move came following the collapse of the two digital assets connected to the startup as the UST stablecoin de-pegged from its projected $1 mark. Trillions of LUNA coins get minted such that their value gets diluted below $0.00.
The resignations of general counsel Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler were more like a planned move as the LinkedIn profiles of all three showed they stopped working for Terraform Labs as its legal team this month.
The trio had less than a year spell at the company as the oldest staffer of all three, Goldich joined the team in August last year with Florio and Axler joining earlier this year.
The mishap that befell the Terra ecosystem is unprecedented, and one of the rarest ever seen in the history of the blockchain ecosystem. This is so because Terraform Labs tried to pioneer a new payment technology in the form of algorithmic stablecoin, one that differs markedly from its peers like the USDT which has its reserves domiciled in US dollars.
The frailty of the algorithmic stablecoin protocol was reflected in how easy it got attacked a little more than a week ago, and recovery was hard to make despite the several attempts to re-peg it back to $1. Infact, the Luna Foundation Guard (LFG), a not-for-profit organization tasked with developing the reserve for the UST stablecoin, unveiled earlier this week how it has depleted its Bitcoin and stablecoin reserve in a bid to restore the UST’s downfall.
The resignation of the Terraform Labs legal team has pushed the company to turn to outside counsel for legal affairs, according to accounts from insiders.
Terraform Labs Legal Team Resignation Not Deterring Search for Way Forward
Everyone linked with the Terraform Labs is not living in denial about the collapse of the Terra blockchain in its current form and the exit of the legal team is not deterring Do Kwon from proposing a way forward to revive the protocol.
One of its latest proposals was to fork the Terra blockchain in order to create a new token. However, the community has opposed this move as many disagreed with the proposed allocation to key builders and previous holders of the UST and LUNA coins respectively.
The Terraform Labs startup is currently on the edge as many investors have lost a lot of money by virtue of the collapse of the protocol. Whether or not Do Kwon will regain investors’ trust is not up for debate, but rather, the ability of him and his team to devise an ingenious way to make investors recoup some of their lost funds.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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