Do Kwon, the founder of TerraForm Labs, Luna and UST, broke down the events following their collapse on an exclusive interview with coinage media.
UST was an algorithmic stablecoin which was supposed to maintain its peg to the U.S. Dollar. Unfortunately, it faltered and crashed, resulting in many people losing their life savings.
Since then, Terra related entities have been raided by South Korean Prosecutors, lawsuits have been filed, and Do’s own house has been broken into.
The Interview
The conversation with Coinage media begins with Do admitting that he may have been blinded by the success of Terra.
“Obviously in hindsight, a lot of the beliefs and conjectures that I made were wrong“
However, he states that it was a project done out of passion, and not for personal gain, and admits that he was wrong. He also believes that he held true to his values till the end, building a reserve with $BTC, and not other stablecoins.
How Do Handled The Collapse
Following the initial de-pegging, Terra held funding rounds, which proved unsuccessful. This led to Luna being heavily shorted, and the beginning of the death spiral.
“If you asked me whether there was a mole in TFL (TerraForm Labs), that’s probably yes.“
After the chain halted, Do reached out to those close to him in the Terra community and likely informed them that Luna and UST had failed.
He also regrets how he represented himself on twitter, calling it “cringe“.
Do further claims that he is “down infinite“, as he viewed Terra as his life, and bet everything on it – which likely includes most of his money.
“Like eight days, I don’t think I slept at all”
However, he denies claims of fraud, noting that UST “it was working beautifully … until it stopped working.”
Also Read: “Terra Is More Than UST”: Will Do Kwon’s Revival Plan Save The Terra Chain?
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Coinage media
