You all must have heard of Terra luna cryptocurency and its founder Do Kwon. But Do you Know the Terra Luna Founder, Do Kwon Net worth? Well, in this article we have covered all the essential info that you should know about from Do Kwon Net Worth to recent crashing of Terra Luna crypto.
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Do Kwon Net Worth 2022
Considering his career in the cryptocurrency, it can be estimated that Do Kwon must possess almost $10 Billion in USD. Interestingly, the Wall Street Journal reported that Do Kwon was likely a multi-billionaire when LUNA was trading at $100 USD prior to its crash.
It was an unexpected and horrific crash for the investors. Talking about the same, public investments worth 45 billion USD were swept away in the crash; the money simply vanished. Though the crash may have destroyed his net worth, still he is counted as a billionaire in the crypto realm.
What Terra Luna is All About?
The founder and CEO of the South Korean business Terraform Labs, is Do Kwon. It has been headquartered in Singapore. Terra LUNA was developed by Do Kwon at Terraform Labs (now LUNA Classic following the accident).
Terra USD (UST) was an algorithmic stablecoin designed to maintain a 1:1 peg with the US Dollar. It was the most essential characteristics of Terra Luna cryptocurrency. In a layman word, UST pegging was a straightforward methodology to stop Terra LUNA’s market crash or price swings, which even help it to continue to be a stablecoin. Unfortunately, the Terra Luna Price just got dipped and swiped out millions of dollars of investors.
Who is Do Kwon?
The founder of Terraform Labs is no other than Do Kwon. He was born in South Korea on September 1, 1991. Talking about his studies, Do Kwon at his early stage of life enrolled at the private preparatory Daewon Foreign Language High School in Seoul, South Korea. He completed his elementary and primary education from there and come to Stanford University.
At Stanford University, he pursued a higher education by studying computer science. He is no doubt a prodigy student while his education life. Do Kwon have an experience of working with different reputed companies and organizations. Previously, Do Kwon has worked at Apple and Microsoft, albeit only for a brief period of time in both.
With his effort and skills, he stepped into the crypto market and created a cryptocurrency, named Terra Luna.
Was Terra Luna Really a Stablecoin
Before Terra Luna got crashed, it was considered a Stablecoin. It was because the TerraUSD’s price was pegged to the US dollar. In actually it was not a stablecoin. In order to remain in the slot of stablecoin, there are parameters which any stable crypto must meet.
To ensure that each coin of crypto is backed by its corresponding value in dollars, cash reserves are used as collateral. For instance, Tether, a stablecoin asserts that its tokens are backed entirely by its reserves. The collateral as a reserves in the banks for Tether coin are comprised of cash and “cash equivalents,” and that each token is tied 1:1 to a corresponding fiat currency.
Because the US dollar is naturally contained in the banks of the United States and other reserves from across the world, stablecoins like Tether (USDT), Binance USD, etc., are backed by the real US dollar, which is a stable currency in and of itself. The native token USDT is stable and secure since the US Dollar is issued by the United States, a sovereign nation, and its value and worth increase daily rather than decreasing.
Is Terra Luna a Ponzi Scam?
Talking about the Terra Luna, the native token of the Terra Blockchain System is called LUNA. Terra USD (UST), considered a stable token was used to peg the value of LUNA. Its value was determined via a complex system of codes to be equal to the value of the US Dollar rather than being connected to any real money, like the US Dollar. It was therefore known as a stablecoin prior to the crash.
The de-pegging of Terra LUNA (LUNA Classic Currently) and Terra USD (UST) was the primary cause of the crash. In my opinion, this may have been a server-side technical issue, but it also may have been a premeditated crash by the firm considering that it was not reacting to trolls or its users on Twitter. Additionally, the developer of Terra LUNA has a track record of developing unstable coins.
The company created more than a million LUNA tokens to offset the token’s dropping value, yet this move led to an exponential decline in value rather than a gain. The company didn’t even burn the additional LUNA coins to try to stabilize the token’s price.
In fact several reputed crypto currency exchanges, including CoinDCX, WazirX, Binance, and Coinbase, were ready to assist Terraform Labs during that crucial time. And also take significant step for technical support to assist in stabilizing the value of Terra LUNA by re-pegging the token with UST. But they didn’t even accept their initiative, that certainly seems bizarre.
FAQs on Do Kwon Net Worth
Q. Where is Do Kwon now?
Ans- The address of chief executive officer (CEO) of Terraform Labs Pte. Ltd., Do Kwon-hyung is still not known to the public. However, South Korean prosecutors say that he left Singapore last month and landed in Dubai, United Arab Emirates.
Who is the founder of Terra crypto?
Ans- No other than Do Kwon is the founder of Terraform Labs and Terra Cryptocurrency
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