Do Kwon Apologizes for Hurting Terra’s Users and Investors

Do Kwon, the brains behind the Terra blockchain project, has apologized to members of the Terra ecosystem and the crypto community for the recent depegging event.

Last week, UST, Terra’s algorithmic stablecoin depegged from the US dollar, which forced the price of LUNA, the project’s governance token, into a free fall.

All efforts to save UST proved futile and within a matter of days, LUNA crashed from over $60 to as low as $0.00002, a 99.9% drop from its ATH. The crash left investors scratching their heads as they watched their investment vanish into thin air.

Kwon Apologizes to the Community

Following the incident, Kwon apologized to the Terra community on Friday, noting that he was heartbroken that his “invention” had brought pain to users and investors.

1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.

I am heartbroken about the pain my invention has brought on all of you.

— Do Kwon ???? (@stablekwon) May 13, 2022

The Terra boss said that neither him nor the institutions affiliated with the project profited from the crisis as he did not dump his LUNA or UST positions.

As part of his apology, Kwon revealed he and his team are currently documenting how the Luna Foundation Guard (LFG) spent the Bitcoin reserve during the UST depegging crisis.

Coinfomania reported at the time that LFG emptied $2.2 billion worth of bitcoin from its BTC reserve to save the stablecoin.

Preserving the Terra Community

While Kwon still believes that decentralized economies deserve decentralized money, he noted that UST cannot be that money as the stablecoin has lost the trust of community members and investors. 

“Luna has been so severely liquidated and diluted that we will lack the ecosystem to build back up from the ashes. While a decentralized economy does need decentralized money, UST has lost too much trust with its users to play the role,” he said. 

Kwon noted that the priority now should be to preserve the Terra community and its developers.

6/ What we should look to preserve now is the community and developers that make Terra’s blockspace valuable – I’m sure our community will form consensus around the best path forward for itself, and find a way to rise again.

— Do Kwon ???? (@stablekwon) May 13, 2022