Preface
Han Han said that life is like a play, and we meet because of fate. The cryptocurrency market is no different; various heroes take turns to perform, creating a lively spectacle. Today, let's talk about this modern version of the 'Romance of the Three Kingdoms,' featuring Do Kwon, Su Zhu, and SBF. Their story has laughter and tears, love and hate, and in the end, it’s quite tragic.
I. Do Kwon: From 'Crypto Genius' to 'Fugitive Tycoon'
Do Kwon, a Korean, a Stanford graduate, who once worked at Apple and Microsoft, is considered the 'model child' in the tech circle. In 2018, he suddenly found traditional internet uninteresting, turned to blockchain, founded Terraform Labs, and launched a project called Terra, focusing on the algorithmic stablecoin UST and governance token Luna.
At first, Terra and Luna were incredibly popular, especially the Anchor Protocol, which claimed an annual yield of 20%, attracting a bunch of speculators eager to make easy money. Do Kwon also became a top figure in the crypto world, shouting slogans on Twitter every day: 'UST is the future! Luna is faith!' But what happened? In May 2022, UST suddenly collapsed, and the price of Luna plummeted from over $100 to almost zero, leaving investors in tears.
Do Kwon was quick to escape, first hiding in Singapore, then wanted by both South Korea and the U.S., and finally captured in Serbia. Some say he is a genius, while others call him a fraud, but regardless, his story teaches us: don't put all your assets in one basket, especially if that basket is one you made yourself.
II. Su Zhu: From 'King of Hedging' to 'Bankrupt Debtor'
Su Zhu, a graduate of the mathematics department at Columbia University, once thrived on Wall Street. In 2012, he and his close friend Kyle Davies founded Three Arrows Capital, initially focusing on forex arbitrage, later discovering that cryptocurrency was more thrilling, so they went all in.
How famous is Three Arrows Capital in the cryptocurrency world? Let's just say that during the bull market in 2021, the assets they managed exceeded $10 billion, everything they invested in rose, and everything they bought made a profit. Su Zhu became the 'King of Hedging' in the crypto circle, posting his earnings on Twitter every day and mocking those 'cowards' who dared not leverage.
So what happened? In May 2022, Terra-Luna collapsed, and Three Arrows Capital, heavily invested in Luna and UST, lost everything. To make matters worse, they were also deeply in debt, including money owed to Voyager Digital and BlockFi. Ultimately, Three Arrows Capital declared bankruptcy, and Su Zhu and Kyle Davies became 'debtors,' chased by regulatory agencies around the world.
Su Zhu's story teaches us: leverage is a double-edged sword; used well, it can elevate you, but used poorly, it can bring you down.
III. SBF and CZ: From 'Good Friends' to 'Deadly Enemies'
SBF (Sam Bankman-Fried), a graduate of MIT's physics department, once worked as a trader on Wall Street. In 2019, he founded FTX, focusing on cryptocurrency derivatives trading, quickly becoming a 'new noble' in the crypto world. SBF also has a reputation for being particularly fond of charity, often claiming he would 'donate 99% of his wealth,' making himself seem like a saint.
CZ (Zhao Changpeng), the founder of Binance, the 'big brother' of the crypto world. At first, Binance also invested in FTX, and the two were as close as wearing the same pants. However, later on, FTX grew larger, and SBF became increasingly arrogant, even openly challenging Binance. CZ saw this and thought, 'This won't do!' So, in 2021, Binance announced it was liquidating its shares in FTX, leading to a formal falling out between the two.
In November 2022, FTX fell into a liquidity crisis due to misappropriating user funds. CZ initially said he would acquire FTX but then quickly withdrew the proposal, causing FTX to collapse instantly. SBF was arrested and faced multiple fraud charges, while CZ became the 'last winner' in the crypto world.
This story tells us: in the crypto world, there are no eternal friends, only eternal interests.
IV. Dominic Williams: From 'Tech Guru' to 'Defender of Rights'
Dominic Williams, the founder of the Dfinity Foundation, created a project called ICP, claiming to rebuild the internet using blockchain technology. In May 2021, ICP launched, and the price soared to over $700, ranking among the top ten cryptocurrencies by market value.
But good times don't last long; the price of ICP quickly plummeted, and Dominic Williams was furious, publicly accusing SBF and FTX of manipulating the market. He said, 'FTX's massive sell-off of ICP caused the price collapse; this is blatant market manipulation!' He even threatened to sue FTX, making himself seem like a 'defender of rights.'
But the question is, is the plummeting price of ICP really all FTX's fault? Dominic Williams probably isn't sure himself. After all, in the crypto world, price fluctuations are like the weather; no one can predict them.
V. Conclusion: The 'Love and Hate' of the Cryptocurrency Circle
Do Kwon, Su Zhu, and SBF were once the 'top figures' in the crypto world, but in the end, they all fell due to their own ambitions. Do Kwon succumbed to the bubble of algorithmic stablecoins, Su Zhu fell to the temptation of high leverage, SBF fell victim to greed and arrogance, and while CZ laughed last, he may not be able to rest easy.
The crypto world is like a marathon without an end; running fast doesn’t guarantee victory, but running steadily is the key. Don't trust those grandiose stories too much, and don't overly idolize those so-called 'big shots,' as the only constant in this market is change itself.
Finally, here's a saying for everyone: 'There are risks in the crypto world; enter the market with caution. If you must enter, remember to wear a helmet.'
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