Do KwonDo Kwon will eternally be remembered by the crypto community for his significance and impact on the DeFi market. Kwon is best known as the CEO and co-founder of Terraform Labs, the corporation that developed the Terra blockchain as well as the LUNA and TerraUSD tokens.
In April 2022, the LUNA token was one of the most successful digital currencies in terms of market capitalization. Today, however, is the anniversary of Do Kwon’s infamous tweet, which has since become a cautionary tale and meme within the crypto community.
Do Kwon one year horrible anniversary – The roadmap
The collapse of Terra Luna and USDT sent shock waves to the crypto community. This fateful event began what has come to be termed the worst winter in crypto history. This failure opened up the DeFi ecosystem to scrutiny from regulators and those who did not support the crypto industry from the very start.
In the midst of the turmoil surrounding Terra’s collapse on May 9, 2022, Terra’s founder Kwon tweeted, “Deploying more capital – steady lads.” The tweet indicated a futile attempt to maintain confidence in the Terra ecosystem, despite UST’s lost peg to the dollar and LUNA’s falling value.
That tweet was among the many measures Do Kwon took to stabilize the collapsing entity. The last purchase brought Terra’s reserves to $3 billion dollars, mostly in BTC.
These measures were insufficient, and the value of LUNA fell 96% on May 12 to less than $0.10, with many exchanges suspending transactions in the coin. The next day, it was worth $0.
South Korea alone estimates that 280,000 of its citizens lost money in the crisis. As investors fled the Terra blockchain, $28 billion in value was wiped from decentralized applications.
Multiple financiers, exchanges, and brokers filed for bankruptcy as the collapse accelerated the loss of billions of dollars across the entire crypto market.
Justin Sun, one of Kwon’s greatest detractors, used his moment of failure to reassure customers of the USDD stablecoin’s stability. Justin Sun took to Twitter at the end of 2022 to reassure investors that his stablecoin $USDD is 200% overcollateralized. In doing so, he mocked a controversial tweet by Do Kwon.
What lies ahead for Do Kwon?
It’s been a year since Do Kwon pulled one big stunt on crypto investors. His arrogance and overbearing self-confidence is one that forced the crypto community to pay attention to projects’ white papers rather than take project heads at their word.
By a close matrix, Critics began to doubt Terra’s stability in March 2022, with some even betting against the price of LUNA. However, Kwon appeared undeterred and taunted those who disagreed with him on social media.
According to reports, Kwon was apprehended in Montenegro in March, and if he is extradited to South Korea, he will undoubtedly face more than 40 years in prison. In the year since Do Kwon’s tweet, the crypto market has experienced both highs and lows. However, one thing remains constant: the enthusiasm and determination of crypto enthusiasts who are determined to make the most out of this emerging industry.
Just a few hours in – Cryptopolitan reports that despite Kwon being in prison, he has begun moving money tied to his two wallets. The two wallets reportedly sent over 2.3 million LUNA tokens to Binance, sparking intrigue within the cryptocurrency community.
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