Do Kwon says he is heartbroken over the Terra collapse and insisted that he didn’t profit from the collapse of the UST stablecoin as well so let’s read more today in our latest cryptocurrency news.
Do Kwon says he is heartbroken about the Terra situation and he has been known to lead an aggressive social media strategy but now he was silent for the past few days as the network got worse and worse. Hours after Kwon proposed a new revival plan for Terra, he returned to Twitter to express his sadness about how things turned out. He also said he spent most of his time on the phone with people that were devasted by the UST depegging:
“I am heartbroken about the pain my invention has brought on all of you.”
UST is an undercollateralized stablecoin and was designed to maintain parity with the dollar via aburn mechansim with Terra’s LUNA governance which slipped from its peg over the weekend. Terra mobilized a $1.5 billion loan from the reserve fund as the entire crypto market started crashing but it wasn’t enough to keep the stablecoin at the $1 peg. The price continued falling and took LUNA with it. The stablecoin is trading below $0.20 and LUNA I trading at the fractions of a cent. The blockchain in the meantime Is paused as the community decides how to move forward.
Kwon took the thread today as an opportunity to re-up his proposal which involves rebuilding the blockchain without the UST stablecoin and to redistribute the LUNA tokens. A lot of people lost money with Terra’s downfall and while Kwon doesn’t detail his own losses, he noted:
“Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no luna nor ust during the crisis.”
Kwon’s contrition is in stark contrast to the tone he took in the days and the weeks that lead up to the crisis in one example from May 9, he wrote:
“Anon, you could listen to CT influensooors about UST depegging for the 69th time. Or you could remember they’re all now poor, and go for a run instead.”
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