Earth and Moon. A very direct analogy was the fund proposal of Terraform Labs, the company founded by Do Kwon and which is already one of the largest.
But, behind all this framework, in which many funds and investors trusted, is Do Kwon, the face behind Terra’s proposal, his Luna toke and his stablecoin (UST), which has proven not to be very stable by losing its parity with the dollar.
Kwon, the ‘father’ of a seductive proposal who did not hesitate to show his ego on Twitter
As we say, Do Kwon is the founder and CEO of Terraform Labs. He, like Terra as a company, is South Korean, which is an important detail because it is unlikely that a financial experiment of this magnitude could take place in such an environment. stricter regulatory framework, such as that of the United States.
The son of a distributor of pharmaceuticals and medical equipment, Kwon had a very international upbringing. A self-proclaimed “nerd” as a teenager, he began reading theoretical works at an early age. His story sounds a lot like that of a Silicon Valley wunderkind. He successfully graduated from the prestigious Stanford University, where he earned a degree in computer science. He then took a job at Microsoft until leaving the company six years ago to found Anyfi, a company that used mesh Wi-Fi technology to deliver bandwidth to those without Internet access.
Among its investors was the South Korean government, and the funds raised exceeded one million dollars. Of course, this work led him to where he is now: cryptocurrencies.
It created Terra, which includes the aforementioned Luna, UST, as well as Anchor, Mirror (two protocols) and many more apps among its ecosystem. He became one of the biggest names in cryptography, despite being just 30 years old.
A project that seduced many investors
Until this week, UST was the most successful algorithmic stablecoin ever. But the UST stablecoin collapsed due to something that doesn’t change in economics no matter how much things change: lack of trust. Investors no longer felt confident that the dollar peg would hold. Like an emerging economy that pegs its currency to an established one, but has little cash reserves or debt backing to support it, it all fell apart.
During this time, Kwon has always been very active on Twitter, where he often responded rudely to his critics.
In retrospect, he was perhaps the leader of a highly experimental ecosystem that was valued in the billions, while still in his early 20s, and abusing anyone who dared question the reliability of his asset.
Kwon has tried to get out of the debacle with a new proposal to rescue his idea from the many damages suffered, but it does not seem that he is going to come out with the same number of followers that he had.
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