Do Kwon mention that he also suffered huge losses because he never sold any of the tokens.
Terra’s team, led by Do Kwon, has come under heavy scrutiny within the past week for the way it handled the situation that led to the de-pegging of TerraUSD (UST).
Many allege that UST lost its peg to the dollar because the Luna Foundation Guard (LFG), the organization that oversees the reserve backing of the stablecoin, sold the stablecoin in a bid to make a profit.
Do Kwon said he was very upset by the way things have gone so far, and apologizes for the panic caused to investors:
“I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends, and family, that have been devastated by UST depegging. I am heartbroken about the pain my invention has brought on all of you..”
“We Did Not Sell UST Nor LUNA During Crisis”
Responding to the allegations, Do Kwon, the founder of Terra, noted earlier today that neither he nor any of the institutions he is affiliated with profited from the unfortunate incident that led to the de-pegging of UST.
He confirmed that despite the massive crash of Terra’s ecosystem of cryptocurrencies, he never sold these coins.
“Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no LUNA nor UST during the crisis,” Kwon said.
3/ Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no luna nor ust during the crisis.
— Do Kwon ? (@stablekwon) May 13, 2022
While there is a possibility that the team may have used some of its Bitcoin holdings to salvage the situation during the UST de-pegging, Kwon noted that he and the Terra team are “working on documenting the use of the LFG BTC reserves during the de-pegging event.”
Kwon pleaded with the community to exercise patience with the team, as the organization is currently “juggling multiple tasks simultaneously.”
UST and LUNA Crash
Recall that UST, which was supposed to remain pegged to $1, lost the peg earlier this week and crashed to a low of $0.066, according to data on Coingecko.
The unfortunate incident also took a considerable toll on LUNA, which despite reaching a high of $125 last month, dipped to an all-time low of $0.00000009.
Despite the massive price crash of Terra’s native cryptocurrencies, Kwon expressed his confidence that “decentralized economies deserve decentralized monies.”
However, he believes UST cannot be described as decentralized money in its current form.
2/ I still believe that decentralized economies deserve decentralized money – but it is clear that $UST in its current form will not be that money.
— Do Kwon ? (@stablekwon) May 13, 2022
At press time, UST is trading around $0.15 across major exchanges.
“What we should look to preserve now is the community and developers that make Terra’s blockspace valuable – I’m sure our community will form consensus around the best path forward for itself and find a way to rise again,” Kwon concluded.
Yesterday Binance CEO said he was “Very Disappointed” With How The Terra Team Handled The Luna And UST Incident.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
