Engaged in a series of controversies and investigations following the collapse of the Terra ecosystem (LUNA) and the stablecoin UST, Terraform Labs CEO Do Kwon said he is confident in the reconstruction of the Terra blockchain, which has been “reset” after a hard fork.
Do Kwon is very positive about new Terra blockchain
In an interview with The Wall Street Journal, Do Kwon said the network could come back even stronger than before.
“I have great confidence in our ability to come back even stronger than we’ve ever been,” Kwon told The Wall Street Journal. “Many builders are in the process of relaunching their apps on the new chain.”
Also during the interview, Do Kwon said he was “devastated” by the crisis on the Terra network.
“I hope all the families that have been impacted are taking care of themselves and those they love,” he added.
As Cryptheory reported, the governance team approved Do Kwon’s proposal to relaunch the Terra blockchain and create a “LUNA 2.0” token in late May.
With the relaunch of the network, the “old” Earth became Classic as well as the LUNA token. Meanwhile, the stablecoin that collapsed, UST, has been discontinued.
In this process, many projects built on the Terra network have migrated to other blockchains, such as Binance and Polygon.
Naturally, the ecosystem has lost the credibility of users and the LUNA cryptocurrency cannot take off. Launched at a starting price of around $20, the price of the digital asset today is below $2.
Following the network’s collapse, Do Kwon and Terraform Labs were the subject of a class action lawsuit that accused them of selling unregistered securities and making false statements about the stability of the UST.
In addition, they are undergoing another lawsuit in South Korea. Country’s lawmakers are banning Terra developers and ex-developers from leaving the country.
According to local news portals, the ban is in effect until investigations into the failed crypto project continue.
It is worth noting that authorities are also investigating Terraform Labs, the company behind the project, for possible tax evasion in South Korea. The value of the alleged debt is about $78 million.
Do Kwon defends himself against the accusations of “fraudster” he receives from all sides. He says he placed bets on behalf of the UST because he “believed in its resilience and its value proposition.”
“I have since lost those bets, but my actions 100% match my words,” Kwon added. “There is a difference between failing and running a fraud.”