The CEO and founder of Terraform, Do Kwon said that the crash of LUNA, the internal currency of the Terra ecosystem has devastated him. Kwon made the statement during an interview with Wall Street Journal on June 22.
The South Korean entrepreneur built a cryptocurrency empire around a Twitter following. He is now a target of legal actions after the cryptocurrency ecosystem that he created collapsed taking with it $40 million in investors’ funds. As Do Kwon works on a possible comeback, there are indications that the investor confidence in the Terra team is at an all-time low after the team’s solution to the LUNA debacle failed.
Low Performing Coins
The new Terra cryptocurrency, LUNA, has performed below expectations leading some investors to assert that Do Kwon should have listened to the suggestions of the Binance CEO, Changpeng Zhao.
A LUNA investor, Cadence, echoed this view when he said,
“Even if he didn’t rug pull which, all evidence points at that he did, he wouldn’t have created Luna 2.0! He would have saved $LUNC exactly how @cz_binance said too!! ”
A More Viable Remedy
CZ suggested that the Terra team burned some LUNA to reduce circulation, but the platform voted to create a new cryptocurrency, LUNA and renamed the older version, LUNC.
The original cryptocurrency, LUNC, is not trading at $0.0000571. Having lost more than 100% of its value. The new LUNA is worth $1.92 even though the team seems to focus on making the new cryptocurrency a success.
Some investors believe that the Terra team led by Do Kwon did not do enough to save the original LUNA. A Twitter user, Gencay, wrote:
“They could of freeze transactions at the time of the attack or many things could of been done instead they watched it die off”
Coins Deaths Are Entertaining
LUNA collapsed after the Terra stablecoin, UST, lost its peg to the dollar. Ironically, last May, Do Kwon said that he finds pleasure in watching cryptocurrencies die. According to Kwon, during an interview with Alex Botez of Teamenvy.
“95% are going to die [coins], but there’s also entertainment in watching companies die too”
Even Botez responded that Kwon’s comment is “so evil”. Perhaps, he never reckoned with his coins dying as well. This is the view of John Wick, an Options trader at Zero Edge, who said,
“I wonder if it’s also entertainment when you watch your own company die 5 days after saying this“