Do Kwon is the Founder and CEO of Terraform Labs that is a South Korean company based in Singapore. Do Kwon in Terraform Labs created Terra LUNA (Currently LUNA Classic after the crash)?
One of Terra LUNA’s main features was Terra USD (UST) which is an algorithmic stablecoin that is meant to maintain a 1:1 peg with the US Dollar. In a nutshell, UST pegging is a simple model to prevent market cap or price fluctuations of Terra LUNA which will help it remain a stablecoin.
Do Kwon’s net worth
According to a report by the Wall Street Journal, Do Kwon was probably a multi-billionaire when LUNA was trading at 100 USD before the crash. The Terra LUNA Crash wiped out nearly all of Do Kwon’s wealth within just a few days in the month of May 2022. The crash flushed away 45 Billion USD worth of public investments, the money just disappeared in thin air.
Who Is Do Kwon?
Do Kwon was born on 1 September 1991 in South Korea. Do Known joined Daewon Foreign Language High School, which is a private preparatory school located in Seoul, South Korea. Then, for his higher education, he studied Computer Science at Stanford University. Formerly, Do Kwon also worked at Microsoft & Apple, but just for three months in each company.
Stage Name: – Do Kwon
Real Name: – Kwon Do-Hyung
Occupation: Cryptocurrency Developer
Date Of Birth/Age: – 06 September 1991 (31 Years Old
Place of Birth: – South Korea
Gender: – Male
Nationality: – South Korean
Marital Status: – Married
Education: – Daewon Foreign Language High School
Terra LUNA: The Reason That Flushed Away Do Kwon Net Worth
LUNA is the native token of the Terra Blockchain System. Stablecoins such as Tether (USDT) are pegged with the actual US dollar which is a stable currency itself because the US Dollar, of course, is contained in the actual banks of the United States and other reserves from over the World. Also, US Dollar is issued by the United States, the country, hence its value and worth increase day by day, it doesn’t decrease, hence it makes the native token USDT Stable & Safe.
On the other hand, the value of LUNA was pegged with Terra USD (UST) which is another stable token developed by Terraform Labs themselves. Its value is not tied to any actual currency like US Dollar, instead, it used a complex set of codes to determine its value which was equivalent to the value of the US Dollar. Hence, it was known as a stablecoin back in the old days before the crash.
The major reason behind the crash was the de-pegging of Terra LUNA (LUNA Classic Currently) with Terra USD (UST), which according to me might be a technical glitch on the server end, but it might also be a pre-planned crash by the company, as the company was not responding to its users and other people’s trolls on Twitter. During the initial few days, the company was acting like it did not even exist. Also, the creator of Terra LUNA has a history of creating failed stablecoins.
To compensate for the falling price of LUNA, the company minted extra few million LUNA tokens, but instead of increasing the value of LUNA, it made the value fall down exponentially, but the company did not even burn the extra minted LUNA coins to re-stabilize the value of the token.
Many leading crypto exchange companies like WazirX, CoinDCX, Binance, Coinbase, etc were ready to help Terraform Labs during that critical time and these companies were ready to provide technical support to help them stabilize the value of Terra LUNA by re-pegging the token with UST, but on the contrary, they didn’t even accept their help. Doesn’t that sound odd?
My Final Words On Do Kwon’s net worth
In my opinion, Do Kwon is not a good CEO and a Messiah. In an interview after the crash, he said, “I alone am responsible for the crash”. He also added that “I have never thought about what could happen to me if this fails”. To this, he added more by saying, “This doesn’t bother me because I live a fairly frugal life”.
After hearing what he said in the interview, common people whose wealth got wiped out in this crash must get heartbroken. Hence, I don’t think Do Kwon deserves to create something where common people should store their hard-earned wealth. Those are my final words on Do Kwon. Let me know in the comments section what are your opinions on the same.