Terra: Do Kwon Not Bothered by Wealth Loss
- Terra’s decline raised questions over the legitimacy and sustainability of stablecoins.
- Regulators are currently investigating the crypto space for possible lapses.
With Terra yet to recover its reputation, many would think that its controversial founder, Do Kwon, would embrace silence. Instead, the 31-year-old seems not to have lost an ounce of the confidence that made investors trust him with billions of dollars and made Terra one of the leading DeFi protocols.
Amid calls for his arrest and prosecution, the Terraforms Lab co-founder claims all his wealth went down the drain following Terra’s collapse in early May. The South Korean native was allegedly a billionaire based on his crypto assets holdings before his stablecoin’s collapse. But, Kwon pays little attention to the loss of his wealth as he believes in living a modest lifestyle.
Kwon Believes Terra Would Bounce Back
At the height of its powers, LUNA traded at $100 earlier this year but all that became dust when the UST stablecoin lost its peg to the dollar. Terra’s decline has been called one of the biggest losses of investors’ funds in modern history. Reports state that about $40 billion was wiped off. The event was surprising to all but for some, things didn’t seem to add up. Many crypto users and investors suspected Kwon and his team of fraud, with some going on to state that the project had been a Ponzi scheme all along.
However, Kwon, true to himself, has strong words for his critics. The Standford University alum retains his confidence in his project and believes it would bounce back even stronger. He told Wall Street Journal
“I have great confidence in our ability to build back even stronger than we once were.”
Kwon later added that many builders are relaunching their apps on the new chain. The underfire boss proposed a chain fork to save his platform from complete extinction. So, following the crash, Terra’s community approved the launch of the Terra 2.0, alongside a new LUNA token.
Authorities Are Investigating Kwon and Terra
Kwon admitted that his bet might not have gone to plan but he believes there is a difference between running a fraud and failing. His statement comes weeks after South Korean officials are said to have opened investigations into the young tech entrepreneur and his alleged involvement in the crisis.
Regulators are further closing down on the crypto space following the recent events. According to reports, the Securities and Exchange Commission (SEC) in the US is looking into potential violations of federal investor protection laws regarding Terraform Labs’ UST marketing methods. It remains to be seen what the findings would reveal.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
