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Do Kwon Says He's 'Heartbroken' Over Terra Demise

Terra co-creator Do Kwon insisted that he didn't profit over the collapse of the network's LUNA cryptocurrency and UST stablecoin.

2 min read
Heartbroken. Image: Shutterstock

Do Kwon is known for an aggressive social media strategy, but the Terra co-creator has been uncharacteristically silent for the past few days as the network careened into catastrophe.

Today, hours after Kwon proposed a "Terra ecosystem revival plan" to the network's research forum, he returned to Twitter for the first time in two days to express sadness for how things have played out.

"I am heartbroken about the pain my invention has brought on all of you," he tweeted, stating that he's spent much of his time on the phone with those who "have been devastated by UST depegging."

UST, an undercollateralized stablecoin that was designed to maintain parity with the U.S. dollar via a burn mechanism with Terra's LUNA governance token, slipped from its peg over the weekend.

Although Terra mobilized a $1.5 billion loan from its reserve fund as the entire cryptocurrency market began to crash, it wasn't enough to keep UST at $1.00. The price continued to fall, taking LUNA with it. The stablecoin is now trading below $0.20 and LUNA is worth fractions of a cent. The Terra blockchain, meanwhile, is paused as the community determines how to move forward.

Kwon took today's Twitter thread as an opportunity to re-up his proposal, which involves rebuilding the Terra blockchain without UST stablecoin and redistributing LUNA tokens.

A lot of people lost money on Terra's downfall, and while Kwon doesn't details his own losses, he did assert, "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 weeks leading up to the crisis. In one widely shared example from May 9, Kwon 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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