As the creator and founder of Terraform Labs, Do Kwon treats his investors and supporters as if they were naive fools and the whole bitcoin world is compelled to believe in implausible guarantees.
Tweeted by Terraform Labs founder Do Kwon, the Terra blockchain is powered by Terraform.
It has taken me the last few days to contact members of Terra’s community on the phone.
“I am heartbroken by the suffering that my creation has caused you,” he remarked, referring to the people who have been affected by the depegging of UST.
Decentralized economies demand a form of money that isn’t centralized, however the current form of $ UST isn’t capable of doing that. There was no profit to be made from the violence, nor did he sell any cash during the crisis, he says.
In order to improve the ecosystem’s liquidity, Do Kwona said that the Luna Foundation Guard (LFG), which is in charge of maintaining UST connected to the USD, had released $1.5 billion in BTC on Monday. For the purpose of raising Bitcoin, the company was also tasked with lending coins to trading firms and 750 million UST tokens. For its inflationary impact, the latter step has been criticized.
He then sent the following tweet to Kwon:
“More capital will ensure stability, folks,” says the advisor.
Documentation of the utilization of LFG BTC reserves during the depegging event is presently being worked on.” Thank you for your understanding as we try to balance numerous projects, “he wrote in his most recent post.
Our community will build a consensus and discover a way forward for the developers that make Terra block space useful, thus we should keep them around for the time being.
What transpired only moments before the accident?
As it turned out, Do Kwon had liquidated Terra Labs just a few days before the disaster, according to the disclosed records.
Just moments before Terra Luna and UST went down in history, Do Kwon had his corporation deregistered.
According to DigitalToday, Do Kwon dissolved Terraform Labs just before the Terra Luna and UST market crashes.
The Terra community and the whole crypto industry were shaken by the disclosure of these data. Nobody expected Do Kwon to pull it off. The fact that he didn’t tell anybody else about it is even more remarkable.
In a Reddit post on Terraform Labs materials in South Korea, more information about the breach was disclosed.
Do Kwon filed a move to dissolve the corporation on April 30, according to the records that have been made public.
Terraform Labs ceased to exist in South Korea on May 4 after their application was approved. However, when Do Kwon relocated the firm to Singapore, he didn’t bother to apply for a license.
The following information reveals that Do Kwon sent 52,189 BTC to the Gemini cryptocurrency exchange through the Terra Foundation. It also sent Binance an additional 28,205 BTC. Coins with a total worth of $ 2 billion were transferred and kept as a reserve to cover LUNA and UST prices in the event of an emergency.
Several members of the Terra community are now questioning if these cryptocurrencies were truly used for their original purpose or whether they were just transferred to target the Terra community.
“On the other hand, moving a corporation to another nation necessitates dissolving it first,” say some in an attempt to grasp Do Kwona’s philosophy. Terra’s CEO could just be in a bad place at the wrong moment.
Many in the industry are now questioning the ability of various cryptocurrencies to weather difficult market movements in light of the demise of Luna and its sibling stablecoin, UST.
Furthermore, the Do Kwon incidents’ chronological chronology has tarnished the crypto industry’s reputation. It has long been considered as an economic horror that is full of frauds and hustlers by many opponents of cryptocurrencies.
Terra Luna’s pricing woes persist as of this writing. The coin is now valued at $ 0.0017 and is ranked number 212 in terms of market capitalization.
Shame on Terra Labs for designing a sophisticated plan that turned out to be a shell and a financial loss for many investors that was difficult to judge by layman.
You should be ashamed of yourself for telling your own community of Lunatics that you’re attempting to bring back dead themes and begging for more money so that you can come back to life. Since May 4, Terra Labs has already disbanded; the new Singapore-based firm has not yet been completely established. This proves that Do Kwon’s community is treated like a group of neanderthals.
Why does the Bitcoin (if any) that were intended to stabilize the UST go to the disbanded firm or the one that hasn’t even been operating yet? Is Do Kwona actually there?
As he has already been summoned to Kwon for hearings in Korea, we can be sure that we will learn more about his situation very soon indeed.
Do Kwon expresses his sorrow for the pain his invention has caused by writing, ‘I am devastated.’ The founder of Terraform Labs had recently dissolved the firm days before the incident. No one else was aware of it, and he didn’t earn a profit. After their application was accepted, Terraform Labs ceased to exist on May 4 in South Korea. The Terra Foundation, on behalf of CEO Do Kwon, sent 52,189 BTC to the Gemini cryptocurrency exchange.
There was a transfer of $ 2 billion worth of coins, which were held in reserve. As of this writing, Terra Luna’s price issues exist. The coin’s current market capitalization is $ 0.0017, placing it at position 212 out of the top 2,500 coins. One company has disbanded, but the other hasn’t yet been fully formed in Singapore.