Do Kwon, the creator of defunct cryptocurrencies TerraUSD and LUNA, is now the subject of criticism and investigation after the failure of his enterprise sparked a significant market-wide catastrophe this week.
The founder of the tokens is known for his active social media campaign; nevertheless, he has been uncharacteristically silent over the past few days as the network has veered toward disaster.
Kwon stated that he has spent the previous several days calling various community members to inform them that the tokens have lost all value.
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The value of Terra’s native LUNA asset, which was worth about $120 at the beginning of April, plummeted drastically this week and was trading at approximately 0.03 cents as of press time.
Kwon broke his social media silence early on Friday evening with three tweets concerning the demise of the LUNA token and its related stablecoin, UST.
A few hours after proposing a “Terra ecosystem revitalization plan” to the network’s research forum, Kwon returned to Twitter for the first time in two days to express regret over the way events had transpired.
Regret and pain. What now? (BrightQuest Treatment Centers)
Do Kwon Is Devastated
“I am heartbroken about the suffering my innovation has caused you all,” he said, adding that he had spent much of his time on the phone with folks “devastated by UST depegging.”
This week, TerraUSD (UST), a stablecoin whose value was intended to be linked to the dollar, lost its peg and never recovered.
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
Kwon’s words were made hours after he proposed via a Terra discussion forum to restart the network by distributing 1 billion tokens to affected holders and users.
The simultaneous collapse of the algorithmic stablecoins UST and LUNA resulted in significant losses for market participants.TerraUSD traded as low as 23 cents amidst frenzied selling. This precipitated a broader crash that knocked the largest cryptocurrency, Bitcoin, to its lowest level since 2020.
UST total market cap at $2.42 billion on the daily chart | Source: TradingView.com
Intruder At Kwon’s Wife’s House
On Friday, MoneyToday reported that an unidentified individual broke into the apartment complex where Do Kwon’s wife resides.
After Kwon’s wife answered the door, the individual reportedly inquired for the company’s founder before fleeing the scene.
After the intrusion, authorities in Seoul’s Seongdong-gu district informed Forkast that Kwon’s wife has been provided with immediate security protection.
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Many of those who have lost a huge investment on LUNA are said to be losing their minds. (BrightQuest Treatment Centers)
LUNA Investors Now ‘Suicidal’
Meanwhile, some investors who had invested in LUNA stated on Reddit that those who had lost everything were suicidal.
In 2021, this individual converted all of his savings to cryptocurrency, with LUNA comprising a significant portion of his holdings, the Reddit post said.
In a related report, according to a post on the most recent tweeter of @EmperorBTC Reports, 22 investors committed suicide after the price of LUNA plummeted close to zero.
The authorities have not confirmed the claimed suicides.
This article was first posted on Bitcoinist.com
Featured image from Port St. Lucie, chart from TradingView.com