Terra (LUNA) creator Do Kwon had the opportunity to reflect on what he considers a lifetime failure in the Unchained podcast with host Laura Shin. According to Do Kwon, the one responsible for the fall of Earth is he and he alone.
The Terra Luna fiasco
The unthinkable happened last May, when the UST stablecoin suffered a depeg (loss of stability at 1 dollar) which led to the collapse of the value of Terra (LUNA). This cryptocurrency had a value of around 86 dollars at the time of the tragedy, but in a few hours its price reached a value close to zero.
Indeed, in an attempt to pay back UST, many LUNA tokens had to be minted to keep the stablecoin stable. As a result, the creation of many LUNA tokens flooded the market, drastically plunging the value of this asset.
Furthermore, this action was unsuccessful, as the UST stablecoin did not recover its 1 dollar value. Thus, one of the largest market caps in the cryptocurrency industry collapsed almost immediately, collapsing like a house of cards within hours. Lot of Investors they lost fortunes to their ruin as a result of this event.
Furthermore, beyond the fall of Terra Luna, this has generated consequences on the entire cryptocurrency market, which was already in a rather unstable year, with an evident bear market following the fall of Bitcoin at the beginning of the year. which obviously had an impact on the entire market.
Such an event has dented investor confidence, reminding us once again how volatile cryptocurrencies are and that nothing is guaranteed, especially when even one of the major cryptocurrencies on the market can collapse in a few hours.
Do Kwon considers himself solely responsible
So recently, in Laura Shin's Unchained podcast, Do Kwon returned to the case. According to him, even if it is difficult to admit and to bear, the only one responsible for this fiasco is himself.
For Do Kwon, in fact, there were many flaws in Terra's design that led to his downfall. He adds:
Whatever the weakness of the Earth project in the face of the cruelty of the market, it is my responsibility and mine alone.
He is particularly annoyed that he has disappointed the community and Earth users who have lost fortunes due to this unprecedented collapse. Therefore he feels:
For the community, for all the companies that have chosen to build their project on the Terra Luna blockchain, for the hundreds of thousands, if not millions, of users who have used the Terra cryptocurrency and its ecosystem based on the UST stablecoin , I am fully responsible for this failure and it is not easy.
LUNA has become LUNC and for many investors who have lost everything but are still part of the community, hope lives on. For this reason, several developers are still working on LUNC and above all on a solution to massively burn the amount of tokens in circulation. Binance recently announced that it is joining the effort by adopting this burning mechanism.
