Terra’s Do Kwon Few Months Ago: If You Keep Using Centralized Stablecoins They’ll Eventually Rug You, Use UST

The new video clip shows Terra’s Do Kwon saying Stablecoins execute rug pulls months before the UST crash.

The Terra community has been hounding Terra founder Do Kwon to find a solution to keep the ecosystem afloat. Even after the launch of Terra 2.0 and the minting of new LUNA coins, Terra is still in trouble.

The new LUNA coin is already struggling to stay competitive. While this happens, there have been reports that Do Kwon and Terraform Labs have abandoned LUNC in favor of the new LUNA and are also planning to create a new stablecoin and ditch UST. This begs the question: what’s really going on behind the scenes? Was it planned?

In a recent video clip posted on Twitter by FatMan, the guy that has been giving Do Kwon sleepless nights, the Terra founder and UST creator seems to know the risks of operating a stable coin and asking people to use UST.

“Do not worry about getting rug pull by stable coins… if u keep on using centralized stable coins they will eventually gonna rug you… so start using UST now.”

I don't know about that one, chief pic.twitter.com/3GKrjWNxSC

— FatMan (@FatManTerra) June 6, 2022

The original video, on YouTube, was posted way back in October 2021, months before Luna and UST crashed.

Use UST

Kwon says that some types of stable coins eventually execute rug pulls in the clip. He then goes ahead to market his own brand, saying that people should just start using UST. From a layman’s point of view, this statement seems totally casual. However, it now raises a lot of questions judging from what happened just a few months after.

For one, Jose Maria Macedo, the guy who hosts the YouTube channel named Delphi Media, is popular, meaning that many people support his work and the people he hosts.

As such, it’s quite possible that UST gained more users as a result of Do Kwon saying stablecoins fail and that people should use UST instead.

In the original video, Do Kwon presents himself as a professional who knows his stuff. He goes on to point out the issues that affect other projects that Terra was apparently handling differently. This was to be proven otherwise when the Terra ecosystems crashed a few months later.

Did Kwon Know UST Was About To Tank?

There have been some claims that the crash of Luna and UST may have been orchestrated from the inside, rather than the popular narrative that outside forces may have had a hand in it.

A case in point is a video where Do Kwon was seen saying that he had a “kill switch” for Terra and that he could destroy everything in 24 hours.

The issues being raised about Terraform Labs and Do Kwon on a daily basis point to one major question: Did they know that Luna and UST were about to crash? Did they plan it? Did they benefit from it? Was this a rug pull? Only time will tell.