Terra USD algorithmic stablecoin creator Do Kwon said via a tweet that he is “deeply heartbroken” about his stablecoins losing functional value this week, Coindesk reports. “I have spent the past few days reaching out to builders, community members, friends and families of individuals impacted by reliance on UST. I am deeply saddened by the problem with your invention. I caused you.”
Kwon, the founder of Terraform Labs — the company that creates the LUNA token, the TerraUSD stablecoin and many other cryptocurrencies — said he has spent the past few days calling out various community members about the tokens losing value. . Luna, priced at nearly $120 in early April, has collapsed this week and is trading around 0.03 cents as of the time of this writing.
TerraUSD (UST) lost its peg earlier this week and never recovered.
Kwon pointed out his “revival” plan on the Agora admin forum for next steps. Posted earlier on Friday, the plan envisages distributing ownership in the network to UST and LUNA holders.
Kwon said he didn’t sell any of his LUNA or UST during the “incident”.
The market capitalization of this token has dropped from $28 billion in early May to just around $600 million at the time of this writing.
The collapse of TerraUSD has raised urgent questions about the ambitions of the developers to build a new form of finance. This shows that despite the hype, the nascent digital currency system is still prone to the kinds of destabilizing banking activities in the non-digital world.
During the days of the above breakup, Kwon repeatedly posted reassuring tweets to his followers. “I understand the past 72 hours have been extremely difficult for all of you,” Kwon tweeted on Wednesday to reassure his followers, who are known as “Lunatics.” “I am determined to work with all of you on this crisis and we will find a way out of this.”
Is Do Kwon a super trick?
Obviously, the Luna/Terra ecosystem has collapsed and the possibility of recovery is almost zero because the main driving force of this market comes from greedy speculators, but they have lost faith and founders. Do Kwon will no longer have a lifeline for his child.
In history, there have been many projects or empires that have collapsed like Luna, for example Theranos or Enron. They all carry the title of “super trick” and it seems that founder Do Kwon also shares some characteristics with these “celebrity”.
It is often said that the pinnacle of deception is the deceiver who deceives himself. Most recently, self-made female billionaire Elizabeth Holmes was valued at $ 4.5 billion by Forbes magazine in 2015, becoming the youngest self-made female billionaire in the world in 2014, compared to Steve Jobs when he founded Theranos to rapid blood test for people. Then in 2021, this “female billionaire” faced a 20-year prison sentence when Theranos turned out to be just a “trick”.
According to Morris, both Holmes and Do Kwon blindly believed in what they were doing even when things turned out to be. Although Luna has become almost worthless, Do Kwon still refuses to admit his mistake and still tries to find capital to pour into the sinking boat, while this hole has been formed since the project. Luna started.
Clearly, Do Kwon is a seller who believes in his product, even if it turns out to be a scam that has left investors reeling with billions of dollars in the air. This will become one of the defense arguments in court when the lawyer tries to prove that Do Kwon did not intentionally deceive investors.
Information about cryptocurrencies (cryptocurrency), commonly known as “virtual money” has not been recognized by law in Vietnam. The information in the article is for reference only and has no investment recommendation value.
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