Terraform Labs co-founder Do Kwon, whose crypto project was eradicated in a $40 billion wipeout in May, told the Wall Street Journal that he lost almost all his net worth in the crash.
“I’ve been devastated by recent events and hope that all the families who’ve been impacted are taking care of themselves and those that they love,” Kwon says.
He also told that he was a likely billionaire when the Luna token backed by Terraform Labs was trading at around $100. Now Kwon lives “a fairly frugal life.”
“This doesn’t bother me,” he mentioned.
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Kwon pushed for the launch of a new version of Terra, the blockchain network that underpinned the unsuccessful cryptocurrencies TerraUSD and Luna. TerraUSD was a stable coin meant to maintain its value at $1, but it is now worth less than a cent. Its collapse caused Luna, the cryptocurrency that maintained TerraUSD’s peg to the dollar, to plummet by more than 99%.
Last month, Kwon released the new Luna 2.0 coin, which was distributed for free to holders of the original token. It fell from its high of $18.87 to $1.97.
Kwon started Terraform Labs in 2018 with Daniel Shin, a respected figure in the Korean startup scene, to develop the Terra blockchain.
According to a 2019 white paper, the idea was to create a family of Terra stablecoins pegged to the dollar, Korean won, and other traditional currencies. So people could use TerraUSD, TerraKRW, and so on, in their daily transactions.