Money Keeps Piling Up No Matter How Much I Spend

Chapter 144

Translator: DreamscribeThe Bitcoin market has changed a lot since the concept of Bitcoin first emerged.

That’s how the world works.

When something does well, a flood of similar things follows, and then a swarm of people try to exploit that to commit fraud.

Among them, coins were the most fraudulent products.

There’s the main coin, Bitcoin, but the problem lay with the coins beneath it.

"Well, there are still many people shouting that Bitcoin is a scam even now."

Bitcoin is still criticized today as being a scam.

And what they say isn't necessarily wrong.

Even I still couldn’t believe that people were buying and selling this for a whopping 40,000 dollars.

But in the end, value is determined by the market.

One could not just blindly label it as a scam.

“Bitcoin is Bitcoin, of course, but the coins below it are definitely more popular. If you go in at the right time and come out at the right time, it could be life-changing. Of course, the problem is that if you get the timing wrong, you could lose your entire fortune...”

“That’s why we’ve thoroughly excluded those scam-like coins, haven’t we?”

“Yes. But people are so drawn to sensational things and the possibility of making quick money that naturally, we’re bound to see some members leave.”

There are people who invest in Bitcoin with their own analysis and philosophy, but there are also many investors who are just aiming for that one big shot.

Those kinds of people don’t fit in with our KW Exchange.

Because here, Bitcoin goes through a much more rigorous screening process than at other places.

Although we handle a wide variety of cryptocurrencies, other exchanges list all sorts of coins with very simple standards, so the number of listings was bound to fall behind.

“But this new Luna and Terra coin that came out recently has a slightly different nature. It adopted an algorithm-based stablecoin system and has become the most popular coin right now. It’s being traded on every exchange except ours.”

Stablecoin.

It means a coin that has stable value.

Even currencies issued by governments struggle to maintain stable value.

So how could a coin, of all things, known for its extreme volatility, be stable?

“That’s why Luna and Terra coins exist to interact with each other. Terra coin maintains a value equal to 1 dollar. But when someone buys or sells large amounts, volatility arises, doesn’t it? At that point, the Luna coin acts as the backing.”

Terra coin maintains a value equal to 1 dollar.

And Luna coin is used as a mechanism to sustain that value.

“It’s like a central bank system, isn’t it? To preserve currency value.”

“Yes. Just like how a government injects money whenever it wants to maintain currency value, this works the same way. Luna supports Terra so that Terra’s value doesn’t fall.”

That was the stablecoin that was gaining popularity these days.

But the beginning of stablecoins actually dates back quite far.

The Tether coin, first issued in 2014, was just that.

It maintained the coin’s value backed by fiat currency.

However, there were many criticisms about this.

What was the starting point of Bitcoin?

It was decentralization.

But Tether coin had to maintain value based on fiat currency, so it couldn’t truly be called decentralized.

“But Luna and Terra coins don’t need to maintain collateral, and since their capital efficiency is high and the issuance amount is infinite, in theory they can be maintained. That’s what differentiates them from the existing fiat-backed stablecoins, they’re algorithmic stablecoins.”

“Not only that, but if you put money into Terra coin, it says they give an annual interest rate of 20%. That’s also one of the reasons people are flocking to Luna and Terra coins.”

The system of paying interest wasn’t unfamiliar in the Bitcoin market.

This was called a DeFi service, and the 20% annual interest rate was the highest ever.

“Certainly, that’s something people would flock to.”

“Yes. Recently, after being listed on our competitor FTX, it has gained tremendous popularity. To the point that a large number of members are rushing over there.”

In other words, this coin is currently heating up the Bitcoin market more than anything else.

“That’s why the staff at KW Exchange are strongly recommending this coin. Many exchanges, including FTX, which is right behind us in pursuit, have already listed Luna coin and are joining the trend.”

Just the money flowing into this coin now amounts to 30 billion dollars.

Over 30 trillion won gathered in an instant.

“At this rate, they say it will easily surpass 40 billion dollars. And if our KW Exchange lists it as well, it could even break 50 billion dollars.”

Not only KW Exchange staff, but even our own employees were evaluating these two coins quite positively.

Above all, since we were losing our members in real time to major competitors like FTX, it was clear that everyone was getting anxious.

“.......”

But I didn’t like the black and red aura emanating from Luna and Terra coins. It looked as though investing in them now could lead to very serious danger.

‘Especially this is the problem.’

Just in case, I had the coins thoroughly investigated and looked into their founders.

But even in their photos, a nasty scent was emanating.

“What’s the possibility this is a scam?”

“Well… it’s a coin that broke away from the existing stablecoins and was created with innovative technology. The founder, CEO Kwon Gubo, has an excellent academic background and work history. More importantly, the scale of the investment companies that helped create these two coins is quite substantial.”

The founder’s credentials were solid, and the companies supporting Luna and Terra coins were of a considerable scale.

In other words, this was different in nature from typical scam coins that spike in price briefly and then vanish.

“Does this coin have any vulnerabilities?”

“If you’re talking vulnerabilities… since it runs on an algorithm without collateral, if there’s a major external attack, it could be difficult to maintain its value. But as you can see, the price has surged tremendously, and there’s a large amount of locked-up capital. It’s not something that would easily collapse from external attacks.”

But even after hearing that information from the staff, the colors didn’t get any better, in fact, they became darker and murkier.

It was a clear warning.

“Let’s not get involved.”

“What? But the member churn rate…”

That was a problem too.

Then suddenly, a thought occurred to me.

Why don’t we make one ourselves?

“Why don’t we create something similar to Luna and Terra? And allow those coins to be used on the platforms we’re currently operating.”

It wasn’t based on instinct, it was purely my idea.

"Will the value be fixed like Terra?"

“That’s right.”

“Then do you also plan to include interest through a DeFi service?”

At that moment, my previously quiet instincts sent a sharp jolt.

Could it be that my intuition actually liked this idea?

“That’s true. From a long-term perspective, setting a high interest rate would be a major loss for us. Rather than doing that, it’s better to offer a low interest rate and encourage usage across various platforms.”

“Then instruct them to prepare a report that considers the interest rate, the system, and how we can integrate it into each platform to offer benefits.”

“Yes, ceo-nim.”

Our coin would have solid capital backing, and above all, it would carry the trust of being created and sold directly by KW Exchange, the largest exchange in the world.

Of course, we wouldn’t be able to beat Luna and Terra, who had thrown out that incredible bait of a 20% interest rate, but we had a clear advantage in being able to use our coin across multiple platforms.

Doing this was the only way we could hope to hold on to our departing members.

***

“What? KW Exchange rejected us?”

“Yes. They said Luna and Terra coins cannot be listed on KW Exchange.”

“What? Why? Our coin is the hottest in the Bitcoin market right now. So why the hell are they rejecting us?”

“They didn’t explain the exact reason.”

CEO Kwon Gubo’s pride was hurt.

Even now, both domestically and abroad, people are praising him, calling him the Korean version of Milon Tusk.

But the world’s largest Bitcoin exchange has just rejected him.

“What should we do?”

“What do you mean, what should we do. If those bastards say they won’t follow the trend, there’s nothing we can do about it. Push out articles through the media. Say that KW Exchange is falling behind the trend. That FTX will soon overtake KW Exchange.”

They had thought it was a given that KW Exchange would accept this coin.

But not even a few days after submitting it for review, they were immediately hit with a rejection.

With things like this, there was no one to rely on except FTX.

“What about current sales?”

“Very strong. FTX is actively promoting and marketing it. They’re advertising it as a new-concept coin system and the coin that will bring a new revolution to Bitcoin.”

“Of course. Who do you think made it?”

If KW Exchange had listed it, even more money would have poured in.

But since they rejected it, there was nothing to be done.

Still, there were no regrets.

They just needed to use FTX as a springboard to further grow the coin’s scale.

“But......”

Suddenly, an uneasy feeling came over him.

KW Exchange rejected them without even doing a long screening.

What did that mean?

“Could they know something......?”

About the real reason this coin was created.

***

When coins first became a trend,

Many people said it was a scam and warned never to put money into it.

The securities firms were no different.

But now, the situation had reversed.

The general public shouted that it was likely a scam, but it was the securities firms and investment companies that were now actively encouraging Bitcoin investment.

In Korea, financial institutions are banned from investing in cryptocurrency, but overseas financial institutions are allowed.

So they were creating and selling products based on cryptocurrencies.

“Director. Have you heard the news from KW Exchange?”

“Ah, that they rejected Terra coin’s listing?”

“Yes. They must be angry too, because now they’re pushing out hostile articles saying KW Exchange is falling behind the trend.”

Reynold, the director of Gold Reagan, had already been paying close attention to the news.

Luna and Terra coins were products currently being packaged and sold by many financial institutions. For KW Exchange to reject it meant something was going on.

“Do they see it as highly fraudulent?”

“Rather than that, it seems to be for a different reason. According to the information we’re receiving, KW Exchange is preparing to list a new coin. A stablecoin that they’re producing themselves.”

“What? Kwangwoon?”

“Yes. It seems they’re creating it to counter Luna and Terra. From what I’ve heard, the coin can be used across various platforms connected to Kwangwoon.”

“That’s... not bad.”

“However, the interest rate would be significantly lower. They won’t be offering 20% like Terra coin.”

“Then it could be just a temporary measure to prevent member churn.”

But he thought it over carefully.

Kwangwoon was planning to issue a coin that could be used on platforms they already operated.

If they leveraged their overwhelming capital to operate it, it could have a much larger impact than expected.

“But there’s another rumor going around recently.”

“What is it?”

“There are groups looking to exploit the vulnerabilities in Luna and Terra coins. Bear funds.”

Rumors like that always go around.

When something becomes successful, the flies start gathering.

“If it’s a vulnerability, are they planning to intentionally spike the volatility?”

“Yes. If they shake Terra coin’s price enough to force Luna coin into infinite issuance, the price would crash. If they defend it well, it’ll be fine, but if panic sets in and other investors start selling off too, it’ll create a true death spiral.”

That’s how it works in theory.

For such an attack to be possible, a lot of money would be needed.

Luna coin must have prepared ammunition in advance anticipating such an attack.

There was a high possibility that even if an actual attack was launched, Luna coin wouldn’t collapse the way they wanted.

“Wait a minute. When did this rumor start circulating?”

“Not long ago.”

“It started spreading along with the talk about KW Exchange preparing to issue a new coin, right?”

“Yes, that’s... Ah. Don’t tell me, Director, do you think these bear funds are acting under Kwangwoon’s orders?”

“We’ve seen plenty of cases before. How fanatically those bear funds follow Kwangwoon. If this attack is real, and Kwangwoon is behind it…”

“There’ll be an enormous capital strike.”

“Exactly. If a player like Kwangwoon stabs with that kind of capital, could those two coins really endure it?”

There was no actual evidence that Kwangwoon was planning such an attack.

But what had to be remembered was that even when multiple countries and stock markets had been attacked in the past, there had never been any proof that Kwangwoon was behind the scenes pulling the strings.

“Stop all the Luna and Terra-related products we’re currently selling. And look into those players in detail. How they plan to attack, and when they plan to enter. We’ve got to get in around the same time and make our profit too, don’t we?”

“Ah, yes!”

At the director’s order, the employees rushed out in a hurry.

If they were slow to react, they’d be swept away by this tsunami too.