- In an interview with The Wall Street Journal, Do Kwon, co-founder of Terraform Labs, stated that he lost nearly all of his net worth in the TerraUSD and LUNA token crash, yet he pointed out that such a loss doesn’t really bother him.
- What Kwon is concerned about, are all the people who were affected by the drop in value, such as investors.
After having had great prosperity in the midst of a pandemic, at a time when almost no industry was being profitable due to international restrictions to prevent further contagion, digital assets came out with flying colors, achieving historical records never before thought.
However, all of this is gradually becoming a thing of the past, since last year’s greatness now only remains, as crypto assets today are going through a period of low value and other problems in the ecosystem. , largely due to what crypto enthusiasts have called the crypto winter.
Among those affected by the price crash is Do Kwon, co-founder of Terraform Labs, whose crypto ecosystem fell apart last May, when it suffered a $40 billion drop.
Kwon talks about the consequences of the collapse of LUNA and UST
The chaos generated by the crash came at the worst time in the industry, as it took place amid broader macroeconomic turmoil, setting the stage for continued crypto market volatility seen in recent weeks.
A month after the affectation, Kwon decided to speak about the consequences of the collapse of LUNA and UST, in an interview with Alexander Osipovich and Jiyoung Sohn, journalists from the newspaper The Wall Street Journal.
This is the first interview the co-founder of Terraform Labs has conducted since the Terra crash. In said interview, Kwon noted that he lost almost all of his net worth in the token crash, and yet he pointed out that such a loss doesn’t really bother him.
“This doesn’t bother me, I live a pretty frugal life.”Kwon noted, adding that he was possibly already a billionaire by the time the Terraform Labs-backed LUNA token was trading near $100. Currently said token has an approximate listing value of almost zero.
Nevertheless, what Kwon is concerned about, are all the people who were affected by the drop in value, such as investors, who presented great losses as a result of the fall in prices.
“I am currently devastated by recent events and I hope that all the individuals or families who were affected by the collapse are taking care of themselves and their loved ones.Kwon stated.
We are not scammers
After the collapse was made public, a class action lawsuit was filed against both Kwon and the firm Terraform Labs, which basically accused them of selling unregistered securities and making false statements about the stability of TerraUSD (UST) and LUNA.
Similarly, other defendants for the same reasons are Jump Trading, Jump Crypto and Three Arrows Capital. Terraform Labs did not comment on the matter, but said it would take legal action to protect itself.
As if this were not enough, both Kwon and the company are facing another lawsuit in South Korea. Due to such demand, all Terraform Labs personnel in Korea, Regardless of whether they are employees or former employees of the firm, they are currently subject to a travel ban and leave imposed by the government.
Due to the circumstances of the price crash and the amount of money lost, some members of the crypto community have accused Kwon of running a sophisticated scam, sAs noted by The Wall Street Journal.
One of them is Cory Klippstein, CEO of Swan Bitcoin, who called him a “scammer,” as quoted by the WSJ. In this regard, K.won rejected such signaling, pointing out that he made safe bets and statements on behalf of UST, because he “believed in its resilience and value proposition.”
“I have since lost these bets, but my actions 100% match my words,” added Kwon. “There is a difference between failing and committing fraud.”
Kwon confident in Terra’s “rebuilding ability”
Also, in the interview for The Wall Street Journal, the CEO of Terraform Labs, expressed his confidence in the latest efforts to rebuild the Terra blockchain, after the collapse in May.
Do Kwon said he has “great confidence” in the company’s ability to “build back even stronger” than before.
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