Do Kwon, the founder of Terraform Labs behind UST and Terra (Luna), has been constantly on Twitter to reassure investors since May 9.
“The return of Terra will be the most remarkable sight,” Kwon wrote on Twitter on May 10, when Luna hit $40 per coin and the value of the UST stablecoin lost its anchor. a dollar “Here we continue with everyone”.
Meanwhile, the Terraform Labs team led by Kwon continues to try to get UST back to the dollar price point. According to the Terra blockchain control mechanism, UST is the raw material to generate the governance token of the Luna project, and vice versa, Luna is also needed to mint UST. The solution is: try to print more Luna than the initial total supply instead of holding the 1 billion stablecoins like before.
As of May 13, over 6.9 trillion Luna tokens have been “pumped” into the market to salvage UST, thousands of times more than the previous total supply. The move sent the Luna cryptocurrency free-falling from over $40 per coin on May 10 to $0.00001 on May 13 and is now 0.00036.
Luna’s sacrifice to save UST was unsuccessful as this stablecoin fell from $0.03 to $0.2 on May 15. According to experts, it seems unlikely that UST will return to the one-dollar mark.
Do Kwon was born in 1992 in South Korea. Before Luna and UST collapsed, Kwon and his colleagues believed they had created a better, less buggy version of these tokens. With UST in fifth place among the top stablecoins, Kwon has ambitions for the coin to stabilize, possibly even displacing the USD.
But despite having over $18 billion in market capitalization, UST still fell apart. “I understand that the last 72 hours have been extremely difficult for all of you,” Kwon wrote on Twitter on May 11. “I will be determined to work with everyone to get through the crisis. We will build on it.” Departures”.
In subsequent tweets, Kwon said that he and the Terraform Labs team are rushing to restore the value of UST and urge everyone to remain calm and keep Luna and UST active. He also reassured the community with the news that he voted to distribute $750 million worth of Bitcoin to professional market makers with the aim of buying and selling UST to maintain its value. In addition, Bitcoin vaults worth two billion dollars have also been launched.
However, the sell-off still took place for many days, with many investors losing everything overnight. Most of the exchanges were also temporarily removed.
On May 14, Kwon went on to propose a new revival plan for Luna and UST. He admitted that Terra had completely collapsed in a few days and that it was difficult to rebuild the ecosystem from the ashes. In fact, as trillions of Lunas are injected into the market, the holders of this token become more numerous and more diluted. Therefore, even if UST returns to the $1 level, it will be very difficult for Luna to recover.
According to the new plan proposed by Kwon, there will be a new version of Luna with a total supply of 1 billion tokens. Of these, 400 million will go to reward former Luna holders, the next 400 million will be distributed to UST holders and the remaining 200 million to the community fund. He also assessed that the community group is very necessary for the development of the new network in the future.
Do Kwon believes that Terra is in desperate need of strong community support right now. The company plans to reward the most loyal members, those who still trust and retain Luna, UST when something goes wrong.
Despite making new plans, Kwon admits that things have been difficult. “Over the past few days, I’ve been trying to reach out to builders, the community, friends and families of people who have been affected by their dependency on UST. It’s heartbreaking that my product has caused such a stir. It’s bad for you developers,” Kwon tweeted.
Kwon’s family was ‘terrified’
According to MoneyToday (Korea), after Luna and UST got into a fight, an unidentified man came to Kwon’s house, knocked on the door and rang the doorbell to ask if Kwon was home. Meanwhile, Forkast reported, police in the Seongdong-gu (Seoul) district, where Kwon is staying, said he was taking measures to ensure the safety of family members after Kwon’s wife asked for emergency protection. . . grant.
On Twitter, much criticism was also leveled at the Terra founder. Most of them are people who have lost their investment in Luna and want to get their money back, others call the project