True
Earnings
Feed
Sessions
CareerHub
NEW
Post insight
About
Sponsor a Session
FAQs
Contact
Terms of Use and Privacy Policy
Login
Create account
Earnings
NEW
How to earn on TwoCents
Rankings
CareerHub
NEW
Feed
Sessions
Spaces
About
Contact
FAQs
Terms of Use
Login
Create account
471;
Ntamugabumwe Victor
Kampala, Uganda
403
1717
11
4
In
Blockchain and Cryptocurrency
•
2 min read
•
Dec 23, 2022 06:59a.m.
The 2022 Blockchain Year. A legal perspective of the Lows
In this insight I sum up this year to look at two events. - The Fall of the #TerraEcosystem. - The collapse of #FtxExchange . A case for Developer liability and Consumer and Investor Protection. PART 1 1. The Fall of the Terra Ecosystem #context Founded and Launched in the #TerraLabs in 2018 by Do Kwon and others, it operated on the Cosmos SDK a network that allows other people to develop their own Blockchain products. We look at three components (relevant), the Luna Token, the UST token and the Luna Foundation Guard. The tokens were native to the network and were stable coins with the UST hovering over the price of the dollar. Unlike other stable coins backed by fiat or physical goods, the Terra tokens worked under an algorithmic smart contract. Where the price of the UST increased, more Luna tokens would be burnt to create UST and vice versa to keep the coin stable this was automatic using the algorithmic smart contract. With a market cap of 15Billion $ in March 2022. The UST got depegged from the dollar and didnot rise again leading to the collapse. the Luna Guard Foundation failed to stabilize the Eco system. #Cryptolegalities It should be noticed that this seemed to be a perfect calculation by a developer to ensure that the system was stable using a written code smart contract. This is where we discuss Developer Liability. From the concept in tort negligence - the neighbor principles. A developer's neighbor is the user of the product. The final consumer. Developer liability has been applied in construction law and other areas. it should be applied to #blockchain #crypto PART 2 The Collapse of FTX Crypto Exchange. #context Founded in May 2019 by Sam Bankman Fried and others in the Bahamas, FTX operated as a centralized crypto exchanges but aswell offered a Blockchain token called the FTT and made various deals and collaboration using it's Decentralized Autonomous Organisation the FTTDAO. On 2nd Nov. 2022, CoinDesk published an article with various allegations on FTX and it's sister company's (Alameda Research founded by Sam Bankman Fried) balance sheet. It alleged that Alameda's Balance sheet comprised of almost half of the FTT in circulation and made a conclusion that Alameda Research was still in operation using the funds from FTX's Depositors. The next day Bainance's CEO tweeted that they intended to transfer all their FTT assets back to FTX. This led to panic, various withdrawals that FTX could not implement and hence a liquidity crisis. A story of unfaithful love! FTX filed for Bankruptcy #cryptolegalities John Jay Ray's Affidavit in support of the bankruptcy at paragraph 5 stated, "Never in my career have I seen such a failure of corporate controls and such complete absence of trustworthy financial information as accrued here." This is why we need corporate controls in financial matters. Summarily these are principled on #consumerprotection #investorprotection Crypto 2022!!!!!
Send tip
1
328
0
NTAMUGABUMWE VICTOR
is the most viewed writer in
Banking and Finance.
follow
Other insights from Ntamugabumwe Victor
Ntamugabumwe Victor
Kampala, Uganda
Legal Risks Of Cryptocurrencies On State Sovereignty; A C...
In
Blockchain and Cryptocurrency
Last Week on the 17th of this month, I and a coat author of mine pr...
Ntamugabumwe Victor
Kampala, Uganda
The Mak Law School Experience
In
Education
Around July 2022, I met Mr. Tobi Igbendion who introduced me to the...
Ntamugabumwe Victor
Kampala, Uganda
When Law Meets Politics - Uganda Ministers' Scandal And R...
In
Politics
You may have heard or watched the news from Uganda on the most rece...
Ntamugabumwe Victor
Kampala, Uganda
Central Bank Digital Currency
In
Banking and Finance
THE CENTRAL BANK DIGITAL CURRENCY The world of finance is evolvi...
Insights for you.
Queensley Okon
Information Officer @ Covenant University
Ota, Nigeria
In Blockchain and Cryptocurrency
TO THE MOON AND BEYOND
Did I wake up on the wrong side or right side today? I guess you are the only ones who can tell when you are done reading For a while we have be...
354 views
4 upvotes
0 comments
×
Comments
Share thread
Refresh
×
cancel
Home
Feed
Earnings
CareerHub
Menu
What is TwoCents?
×
×
Share the feed
×
Copy link
Twitter
Facebook
LinkedIn
Whatsapp
Share this post
×
Copy link
Twitter
Facebook
LinkedIn
Whatsapp
×
Insights
Views
Upvotes
Comments
Contributor score
WELCOME
TwoCents is a knowledge marketplace for Africans around the globe.
TWOCENTS
TwoCents offets you a unique opportunity to write and earn from your content.
COMPLETE YOUR PROFILE
Add your City, Bio, Phone Number, Occupation etc.
BUILD YOUR CONTRIBUTOR SCORE
Write insights, share in your network, build your score.
GET VERIFIED
Get a 100+ score, complete a 5-week streak, become verified.
TIPS
Get tipped for your free insights/content
SUBSCRIPTIONS
Receive subscriptions from your most loyal readers.
AD REVENUE
Get a share of what brands pay to advertise on your insight pages.
HELP GROW TWOCENTS
Read, tip and subscribe to content you find informative or interesting.
Q&A SESSIONS
Check out some Q&A sessions, drop a question, comment, share etc.
WELCOME TO THE COMMUNITY
Write. Share. Earn
Previous
Next
Close
Share this post
×
Copy link
Twitter
Facebook
LinkedIn
Whatsapp
Share this post
×
Copy link
Twitter
Facebook
LinkedIn
Whatsapp
Crop photo.
If "Crop" and "Cancel" buttons are not visible, scroll down.
×
The photo you are trying to upload is too large.
Please upload a photo smaller than 4MB.
×
The file you are trying to upload is not an image.
Please upload an image of the following types - PNG, JPEG, JPG, GIF, BMP
×
For best results, be as descriptive as possible. Please refrain from using explicit, obscene or hateful words.
Hyper-realistic
Turning on "Hyper-realistic" will generate hyper-real and dramatic images. Leaving it off will produce more natural, less hyper-real looking images.
Generate Image
Use Image
Clear Image
At least 800 characters — We recommend keeping your insights around 5000 characters, and breaking them into parts if they go over this limit. You can save your insights as drafts and they will update as you type. On the EDIT page, you can link this insight to a series, generate audio etc.
×
Login to share insight
×
Oops!
Looks like
isn't setup to receive tips.
Be sure to check back later!
Close
×
Oops!
Looks like you have not setup your account to send and receieve tips.
No worries!
Click here to add your card details
Be sure to contact us if you have any questions!
×
Let
know you love
their content by sending a tip!
Show support.
Support beyond an upvote, comment or share.
Help grow TwoCents.
Encouraging other writers ensures quality insights.
Send Online
Copy tip link
Close
×
Subscribe to
's
premium insights.
Go premium.
Choose between a monthly, quarterly or yearly subscription.
Help grow TwoCents.
Every subscription encourages the contributor and ensures quality insights.
Send Online
Copy sub link
Close
×
Oops!
Looks like
isn't setup to receive subscriptions.
Be sure to check back later!
Close
↑