Terra’s founder Do Kwon is ‘heartbroken’ over UST crash, he even came up with the plan to help Terra and Luna recover. But the market’s reaction was swift and rather unwelcoming. For example, Dogecoin co-founder Billy Markus advises Do Kwan to leave the crypto industry for good.
Do Kwon tried to keep it cool while Terra’s UST stablecoin was de-pegged from dollar as the result of an attack and the its sister Luna token dipped by 99%.
The overall capitalization of $41 billion was lost in a few days. The Terra’s blockchain was halted to prevent the possible governance attack. As the price of the tokens was somewhere near zero, the attackers could easily launch 51% attack to gain control over the Terra’ blockchain.
So now what? Can Terra and Luna recover?
Some people think the answer is yes and keep buying the dip. Other say Terra and Luna are condemned and will never recover no matter what the Terraform Labs do now.
But Do Kwon, the Terraform Labs co-founder, is full of optimism.
How is Do Kwon is going to recover Terra and Luna?
In his recent tweet Do Kwon said that he is “heartbroken” about his creations losing all of their value this week. He also spent the last several days calling various community members about the tokens’ losing their value.
Luna was trading at $120 towards the beginning of April. However, it has collapsed this week and traded at $0.0003795 on Sunday when Kwon made his tweet.
According to Kwon, his plan to recover Terra and Luna is all about distributing ownership in the network across UST and LUNA holders.
Kwon wants 40% percent of the new tokens to be distributed to Luna holders before the de-pegging event, and the remaining 20% will be allocated to Luna holders at the final moment of the chain halt and the community pool.
Kwon mentioned that there is a need to reconstitute network to preserve the vast ecosystem of developers. He has actually gone as far as to say that the Terra’s network should be now built from scratch. That’s because the entire system witnessed total demise.
Doing all that is a way to recover Terra and Luna, Kwon is pretty sure about that. He aims to incentivize existing members not to abandon the project completely.
How did the market respond to Kwon’s ideas?
It would be fairly easy to say that the reaction was pretty negative. And even hostile at times. People don’t believe Terra and Luna can recover. And moreover, most of them pretty much don’t want that to happen.
Many Twitter users seem to be pretty outrageous and are very eager to lambast Kwon in all sort of ways. Some people claim to have lost millions of dollars because the whole idea of UST being the algorithmic stablecoin proved to be faulty and erroneous.
Bitcoin maximalists are having the best time ever saying something like ‘look, we were right, Bitcoin is the only crypto you need‘ left and right.
And some have gone even further.
Responding to Kwon’s tweet, Dogecoin co-founder Billy Markus said that Kwon should stop bringing more crypto market issues and leave the industry forever. That’s a clear sign Terra and Luna have little chances to recover and aren’t welcome on the market anymore.
Sources: Benzinga, The Motley Fool
