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HomeAltcoinsTerra co-founder Do Kwon reveals insider story of largest crypto collapse

Terra co-founder Do Kwon reveals insider story of largest crypto collapse

The CEO and co-founder of Terra Do Kwon has publicly admitted that he alone is responsible for the worst crypto market collapse.

Terra’s fantastical rise would turn out to be too good to be true, but its nightmare downfall surpasses it all. Over the course of a single week in May, the market’s belief in Do Kwon dropped to zero, and UST collapsed along with LUNA’s. The Terra’s ecosystem collapses in an instant. Do Kwon, the creator of Terra, recently gave his first interview since the project’s failure in May 2022, which cost the crypto industry billions of dollars.

The value of Terra’s UST and LUNA cryptocurrencies dropped by around $45 billion (€44 billion) in a matter of days in May. The project’s failure had an impact on the whole crypto industry.

Kwon stated the following in an interview with host Zack Guzman of the NFTV programme Coinage:

“I never considered what would occur to me if this failed. Put yourself in the founder’s position; the ecosystem is getting ever-closer to $100 billion. When you reach that level after a run of successes, you nearly doubt your ability to fail. “

Kwon disclosed that South Korean investigators hadn’t gotten in touch with him after Luna’s crash. Kwon claimed that if the authorities got in touch with him, he would detail everything that transpired with the project. He stated:

“What we’re going to do is just release the information that we currently have. We’re going to be completely honest and handle any repercussions that may arise. “

Kwon responded when asked whether there was a mole at Terraform Labs who would have benefited from short selling:

“But if such chances were there, then the individual who initially exposed those vulnerabilities is to blame… I alone am accountable for any flaws that would have allowed a short seller to begin turning a profit. “

Multiple class-action lawsuits have been filed against Kwon and his business as of late, and some media outlets have referred to him as “crypto’s Elizabeth Holmes.” Do Kwon denied similarities between his business and Elizabeth Holmes’ infamous blood testing start-up. Kwon said that Theranos was a failure. He stated:

“For Terra stablecoins, it worked flawlessly throughout its whole lifetime and the fact that it was operating wonderfully was evident in the order books and was present in all the integrations in the open source and transparent matter [of] crypto until it ceased working.” 

After changing its name, the Terra project is now listed on a few crypto exchanges, including Binance. It has failed to regain its prior levels of popularity, though.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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