Mirror Protocol

Mirror Protocol is Doomed

Mirror Protocol grave

Do Kwon has a history of failure

You've likely heard about embattled Terra creator Do Kwon in the news a lot lately. I've covered how he may see prison time for his crimes. In fact, a US investigation launched to determine the extent of Kwon's fraud has shown that he moved hundreds of millions of dollars to secret wallets in the months leading up to the Terra collapse. Before Terra and UST, Kwon had another failed stablecoin attempt called Basis Cash.

Though, a lot has transpired since that initial story was written, including a recent story I did about another Terra DeFi project called Mirror Protocol that is facing some challenges. Well, it appears that Mirror Protocol is in more than just a little trouble; it may be doomed.

Mirror Protocol in Its final days

Mirror Protocol is a project aiming to allow crypto users to invest and trade tokenized versions of real stock in companies. Terraform labs is the development team behind Mirror Protocol, and as you can see based on the fate of LUNA, they have a bad track record. Kwon is the CEO of Terraform labs and thus takes responsibility for what occurs. 

After the initial exploit a little over a week ago, Mirror Protocol developers patched the exploit, but it took them a few days. Though, software bugs are the least of the concerns for Mirror Protocol. The United States SEC announced an investigation into their activities in February. Naturally, Do Kwon sued the SEC, claiming they violated they US Constitution.

Recently, there was an update to the court fight, with Do Kwon and Terraform Labs losing the appeal to block the investigation yesterday. Do Kwon siphoning funds from the Terra reserves shows that similar behavior may have occurred within Mirror Protocol. If there wasn't strong suspicion of this, then the US authorities wouldn't be looking into it so closely.

Mirror Protocol at all time low
from CoinMarketCap

 

In addition to these woes, the MIR price is hovering slightly above an all-time low. When you look at the MIR coin, its only purpose is governance, so this makes the project easy pickings for the SEC. After all, they've gone after a top 10 project like Ripple. Considering all of the above details, Mirror Protocol is in dire straits.

Cryptohopper