Do Kwon is an entrepreneur and computer scientist who entered the cryptocurrency world by establishing Terraform Labs in 2018 and gained a great reputation in a short time. Aiming to create an alternative payment network to the traditional financial system with the algorithmic stablecoins UST and Luna he developed, Kwon managed to attract a large audience of investors thanks to his vision and marketing skills.

From Success to the Top:

Kwon's project attracted a lot of attention, especially because Anchor Protocol offered high interest rates. Investors could earn interest rates of up to 20% annually by depositing UST into Anchor Protocol. This caused UST to be in demand and its price to increase. Luna, on the other hand, served as an asset used to stabilize the UST.

Kwon's vision and Terra's rapid growth have made him one of the brightest stars in the cryptocurrency world. Kwon, who was included in the "30 Under 30" list by Forbes magazine, has won many awards and recognitions.

Collapse and Scandal:

But in May 2021, everything turned upside down. The drop in Bitcoin price and investor panic caused UST to lose stability and lead to a mass sell-off. Luna's value collapsed and UST could not maintain its peg with the dollar. This event was recorded as one of the largest crashes in cryptocurrency history and cost investors billions of dollars.

The collapse of UST and Luna led to accusations against Kwon of fraud and deceiving investors. Kwon, wanted by South Korea and the USA, was captured in Montenegro in March 2023.

Kwon was released in June 2023 after being sentenced to 4 months in prison for possession of a fake passport.

Do Kwon's Status:

Kwon is currently free in Montenegro. South Korea and the United States filed requests to extradite him on fraud charges. The Supreme Court of Montenegro decided to extradite Kwon to the United States in August 2023.

Kwon's extradition process is still ongoing.

Do Kwon's Legacy:

Do Kwon's story is seen as an example of the ambition, risks and uncertainty in the cryptocurrency world. The collapse of UST and Luna is a warning to investors that they should be careful when investing in cryptocurrencies.

Kwon's story still continues.

Some additional information about Do Kwon:

  • Kwon studied computer science at Seoul National University and earned a doctorate at Princeton University.

  • Before founding Terraform Labs, he was involved in a number of other startups, including an e-commerce platform called Agora.

  • Kwon is considered the "father of algorithmic stablecoins" in the cryptocurrency world.

Do Kwon's story shows that the cryptocurrency world is a complex and risky environment. Investors should do detailed research and make conscious investments before entering this field.