The Terra blockchain was developed by Korean businessman Do Kwon. When, in March 2022, his UST stablecoin and Luna coin lost 99% of their value in a matter of days, his financial plight attracted the attention of the cryptocurrency world.
Thousands of traders and investors have experienced financial losses. Do Kwon himself did not avoid this tragedy, but he stayed in the ranks and is still working now.
Who is Do Kwon?
Kwon Do-Hyung, 31, is a native of Seoul, South Korea. Do Kwon swiftly rise to prominence in the cryptocurrency business after launching the now-defunct Terra cryptocurrency in 2018. Do Kwon quickly established a spectacular presence in the blockchain industry, ushering in the era of a decentralized dollar-pegged stablecoin UST in 2020.
After earning a degree in computer science from Stanford College in 2015, he worked as an engineer for Apple and Microsoft. He had a lot of computer experience before switching to crypto, where he soon developed a reputation for being an outspoken and contentious character.
Do Kwon’s first technological venture was an online store that aimed to link foreign customers with Korean suppliers. When Do Kwon was just beginning his twenties, the project was started. His swift ascent earned him a place on the 2019 Forbes list of the 30 under 30.
Do Kwon & Terra: How A Top-10 Cryptocurrency Idea Fell to Naught?
When Do Kwon was in his late 20s, he started his cryptocurrency project Terra. Several other well-known tech entrepreneurs, including co-founders Lee Tae-jin from Kakao Talk and JB Lee from Dunamu, supported him (the creator of Upbit). Together, they worked to create Terra, a cryptocurrency platform that can transform digital payments by utilizing blockchain technology.
However, it appeared that Terra’s stablecoin design had flaws because it was unable to withstand the mid-2022 bank run, which finally caused the collapse of the ecosystem. Prior to the incident, Terra Classic cost $110 and UST was linked at a 1:1 ratio to the US dollar. Investors began selling off large quantities of LUNA and UST, though, as soon as the UST peg appeared shaky.
According to sources, the $60 billion decentralized stablecoin project saw a major wipeout of around $45 billion in just a few days, resulting in massive losses for all Terra investors and its founders in terms of their cryptocurrency holdings. Unfortunately, Terra’s failure had repercussions for the whole cryptocurrency market since it significantly changed how many retail investors felt about cryptocurrencies. As a result, the value of other crypto assets drastically decreased.
After UST lost its peg, the overall market value of cryptocurrencies fell from about $1.84 trillion to about $1.30 trillion in only a few short days. The cost of Terra Classic decreased even more dramatically during that time, from $80 to $0.30, while the cost of UST fell from $1 to $0.25.
Do Kwon has been blamed for the crash of Terra, but he has also been accused of breaking numerous laws governing capital markets in South Korea, among other things. Being sought by South Korean authorities for his part in Terra’s 99.99% collapse, the young crypto entrepreneur has had to deal with a number of litigation.
Do Kwon fled Singapore following the Terra collapse, staying in Dubai before eventually traveling to Serbia, where he is thought to be at the time of writing, according to a December report by South Korean authorities published by CNN. When asked if he was “on the run” in September, he responded that his arrest warrant in South Korea was “politically motivated.”
Do Kwon’s Net Worth in 2023
During the early DeFi boom in 2019 and 2020, Do Kwon made hundreds of thousands of Ethereum. Prior to Terra Luna’s demise, his estimated net worth was $50 billion, at a time when one LUNA token was worth more than $110.
Since then, the cost of each LUNA token has decreased by over 99.99% and is now less than $0.0001.