The crypto trade is battling a severe credibility disaster this month. The crash of TerraUSD (UST), a stablecoin pegged to the US greenback, and its native token LUNA earlier this month bankrupted many traders in a matter of days and despatched the crypto market right into a tailspin. UST was meant to at all times be value $1 however it collapsed to as little as 13 cents final week after which to 9 cents this week. The spectacular crash has led to an enormous backlash from offended traders in opposition to the founder and CEO of the Terra blockchain, Do Kwon.
Who Is Do Kwon?
Do Kwon is the creator of TerraUSD and its native token Luna. Nevertheless, many believed he hype and promoted a undertaking and not using a firmer floor beneath. Whereas the South Korean, who graduated from Stanford College with a level in pc science, at all times carries himself with confidence, he has been particularly important of his rivals and detractors on social media. He has criticised traders for placing their cash into rival stablecoin tasks in addition to lashing out at anybody who questioned his credentials. “Bow earlier than the king,” he stated within the tweet.
Kwon has additionally known as UST and Luna naysayers “poor”, including, “I do not debate the poor”.
Following the crash of his much-publicised pet undertaking, Do Kwon is dealing with authorized prosecution in South Korea. 5 South Korea-based crypto traders have filed legal complaints in opposition to him and his Terraform co-founder Daniel Shin, alleging fraud and violations of monetary laws. Do Kwon can also be reportedly dealing with a tax advantageous of $78 million for evading company and revenue tax funds.
Whereas Do Kwon could be accused of mismanaging his undertaking and reckless social behaviour, it is extremely unlikely that he would serve any jail time following the legal complaints. As a result of it is tough to show what he did was a fraud. It was market forces at play. At most, Do Kwon is more likely to endure an enormous hit to his repute except proof of any wrongdoing surfaces.