This is Do Kwon.

Net worth over $3 billion.

Founder of Luna and UST, whose collapse wiped out $45 billion in one week.

Here's the untold story behind it

🧵👇

Do Kwon is a South Korean entrepreneur known for his work in the cryptocurrency space.

He holds a degree in Computer Science from Stanford University.

Before diving into blockchain, Kwon worked as a software engineer at Apple and Microsoft.

In 2018, Do Kwon founded Terraform Labs.

They raised $32+25M from Binance, Coinbase, Arrington XRP and Polychain.

In 2020, Terraform Labs unveiled the TerraUSD (UST) algorithmic stablecoin, which was pegged to the U.S. dollar.

The stablecoin was backed by the LUNA token, which theoretically helped maintain the stablecoin’s dollar value.

While everyone thought South Korea used UST, Terraform had artificially mirrored Chai transactions on its network to create the impression of legitimate traffic.

Kwon suggested they create “fake transactions that look real,” and promised to “try my best to make it indiscernible.”
Kwon always played his own game and misled people.

Before the crash, he accepted a $1M bet that Luna wouldn't fall lower and even offered a bet that UST wouldn't depeg.
So why did Luna and UST crash?

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In May 2022 Terra's Anchor Protocol started reducing the interest rates it provided for stablecoin deposits.

This caused a decline in the number of lenders, who started exiting UST
The burn-and-mint mechanism used by Terra allowed holders to swap UST for LUNA tokens was slow and faced technical issues, with exchanges pausing withdrawals.

This mechanism also led to the dilution of the LUNA token supply, causing its price to drop further.

The depeg of UST from the dollar became bigger as the automated mechanism at Curve’s pool created more discount to incentivize arbitrage traders.

As a result of these factors, UST lost its peg to the dollar, and the price of LUNA dumped.

#SOFR_Spike #US_Job_Market_Slowdown #VanEck_SOL_ETFS #Megadrop
$LUNC