The collapse of the algorithmic stablecoin Terra and its native token, LUNA, created a great storm in the cryptocurrency space. Many investors watched as the Terra ecosystem crumbled with TerraUSD (UST) and LUNA hitting the zeros.
The storm and its effects brought reckless distortions for almost all the tokens in the crypto market. Coupled with some macroeconomic factors, the crypto market witnessed one of its dreadful crypto winters in the history of virtual assets. Subsequently, the broader market lost over half its value at the beginning of 2022.
Following the impact of the collapse and the bearish trend, many crypto-related companies have to adjust to survive the blow. Some embark on staff strength reduction, while some suffer bankruptcy at the end of their struggle. Even now, the crypto space has not yet recovered from the devastating impact of the collapse of Terra.
All through these events, the founder of Terra Form labs, Do Kwon, didn’t comment until now. Kwon’s reaction came through an interview by Coinage, tagged Inside Crypto’s Largest Collapse, which is still not fully aired.
In a video clip of the interview, which Zack Guzman hosted, Terra’s founder admitted that cryptocurrency is similar to a wild card with many uncertainties. Also, he revealed that Terra USD, as an algorithmic stablecoin, was facing pressure.
The 90-second clip gave a preamble of the entire content, with Do Kwon bearing a solemn outlook. Nevertheless, most crypto community participants earnestly anticipate the full interview. This is because it’s the first release that shows Do Kwon in an extensive interview following the collapse of LUNA.
In his interview with The Wall Street Journal, Kwon expressed that Terra ecosystem was not a fraud as some people are accusing him. Kwon mentioned that his statements on behalf of UST were based on his sure bets since he trusted Terra’s resilience.
Kwon stressed that though he failed in his bets, his actions and words are still 100% synchronized. To him, that is not fraud, as there’s a difference between fraud and failing.
The observations of some people who have seen the interview video clip are not all pleasant. Some are not comfortable with the approach of the interviewer and call the interview a publicity stunt.
They stated that a more respectable interviewer should have been more appropriate. However, Guzman mentioned that the interview was not a paid one when he was asked about that.
LUNA price falls in the red zone l LUNAUSDT on TradingView.comBoth Terra form labs and Do Kwon are in legal issues in South Korea. They are facing allegations of tax evasion and others.
Featured image from Pixabay, chart from TradingView.com
