Founder Of Terra LUNA Do Kwon Net Worth 2024: Why Terra LUNA Crash?

do-kwon-net-worth
do-kwon-net-worth

Do Kwon Net Worth: Do Kwon is the person who founded and currently serves as the CEO of Terraform Labs, a company based in Singapore but originating from South Korea.

Within Terraform Labs, Do Kwon played a key role in the creation of Terra LUNA, which is now known as LUNA Classic following a crash.

One of the main features of Terra LUNA was the introduction of Terra USD (UST), which is an algorithmic stable-coin designed to maintain a fixed value of 1:1 with the US Dollar.

To put it simply, UST pegging is a straightforward mechanism implemented to prevent the market capitalization or price of Terra LUNA from fluctuating, ensuring its stability as a stable-coin.

Do Kwon Net Worth

According to a report from the Wall Street Journal, Do Kwon, the founder of Terraform Labs, was likely a billionaire when the price of LUNA reached $100 before the crash.

However, within a few days in May 2022, the crash caused a significant loss of almost all of Do Kwon’s wealth.

The crash also resulted in the disappearance of approximately $45 billion in public investments, as if the money vanished into thin air.

Do Kwon Short Bio

Do Kwon was born in South Korea on September 1, 1991. He attended Daewon Foreign Language High School, a private preparatory school in Seoul.

Later, he pursued his higher education in Computer Science at Stanford University. Before that, he briefly worked at Microsoft and Apple, spending only three months at each company.

Nick NameDo Kwon
Real NameKwon Do-Hyung
ProfessionCryptocurrency Developer
Date Of Birth6th September 1991
Birth PlaceSouth Korea
Age31 Years
NationalitySouth Korean
Marital StatusMarried
EducationDaewon Foreign Language High School
Stanford University

Do Kwon Early Life & Education

Kwon decided to name his daughter Luna, and he made the announcement of her birth in April 2022 through a tweet, saying that she was named after his greatest invention.

On May 12, 2022, an individual investor who claimed to have lost around $2 million allegedly entered Kwon’s high-rise condominium building to demand an apology.

As a result, Kwon’s wife filed a request for emergency police protection, and the incident is being investigated by the South Korean police.

During an interview with the Unchained Podcast in October 2022, Kwon was asked about the South Korean government invalidating his passport. He replied that he wasn’t using it anyway, so it didn’t seem to make a difference to him.

When asked if he had another passport or about his travel plans, Kwon expressed discomfort and chose not to provide any details on the matter.

Where is Do Kwon now?

On March 23, 2023, Do Kwon, who is 31 years old, was arrested in Montenegro. He was apprehended for allegedly using counterfeit Costa Rican travel documents as he tried to board a flight to Dubai.

Prior to his arrest, Do Kwon’s whereabouts were uncertain, as South Korean authorities had issued an arrest warrant for him and five others on financial charges. Interpol also issued a “red notice” for his arrest.

South Korean prosecutors have charged Do Kwon with violating the country’s financial laws, while the US Securities and Exchange Commission has accused him of orchestrating a fraudulent scheme involving crypto assets worth billions of dollars.

Please note that this information is based on available data up until September 2021, and there may have been updates or developments since then. It is advisable to consult reliable sources for the latest information on Do Kwon’s situation.

Terra LUNA: The Cause of Do Kwon net worth Vanishing

LUNA serves as the native token of the Terra Blockchain System. Stablecoins like Tether (USDT) are backed by actual US dollars, which are held in banks and reserves around the world.

The US dollar, being issued by the United States, is considered stable and secure, with its value generally increasing over time.

terra-luna
terra-luna

On the other hand, the value of LUNA was tied to Terra USD (UST), which is a stable token developed by Terraform Labs themselves. Unlike traditional stablecoins, UST did not rely on a direct peg to a specific currency like the US dollar.

Instead, it utilized complex algorithms to maintain a value equivalent to the US dollar. This made it a stablecoin before the crash occurred.

The crash primarily resulted from the decoupling of Terra LUNA (now known as LUNA Classic) from Terra USD (UST). While this might have been caused by a technical issue or a deliberate action by the company, it’s unclear.

During the initial days following the crash, the company remained unresponsive to users and criticisms on Twitter, which raised suspicions.

In an attempt to offset the falling price of LUNA, the company minted additional LUNA tokens. However, instead of stabilizing the token’s value, this influx of tokens caused a significant decrease in value. The company did not take measures to burn the excess minted LUNA coins to restore stability.

Despite the crisis, major cryptocurrency exchanges such as WazirX, CoinDCX, Binance, and Coinbase were willing to assist Terraform Labs and provide technical support to help stabilize the value of Terra LUNA by re-pegging the token with UST.

However, the company declined their assistance, which raised further questions.

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Conclusion

In my opinion, Do Kwon is not a competent CEO or a trustworthy figure. In an interview following the crash, he admitted that he alone was responsible for the crash and had never considered the potential consequences.

He also mentioned that it didn’t bother him because he lived a modest lifestyle.

Hearing these statements in the interview would likely leave ordinary people who lost their wealth in the crash feeling disheartened.

Therefore, I believe Do Kwon is not deserving of creating a platform where regular individuals should entrust their hard-earned money.

These are my final thoughts on Do Kwon. Feel free to share your own opinions on the matter in the comments section.

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