Launched a cryptocurrency that had losses of $40 billion and today faces more than 100 years in prison
In 2022, one of the first collapses of the crypto ecosystem occurred when "Luna" plummeted, dragging down the entire Terra project. The CEO of it all was Do Kwon, a South Korean from Seoul. This crisis caused savers and those who bet on this cryptocurrency to lose a total of 40 billion dollars.
Since his return to Korea, he has worked on new projects that would lead to the Terra project and the Luna cryptocurrency. In January 2018, Do Kwon founded Terraform Labs along with South Korean entrepreneur Daniel Shin. Following the footsteps of Basis Cash, both entrepreneurs proposed the development of a payment protocol capable of integrating multiple algorithmic stablecoins, as well as other tokens, while offering high processing speed and interaction.
By 2019, they had already received investments of 150 million dollars from companies such as Galaxy Digital, Pantera Capital, Binance, Huobi, and OKX. In 2020, the stablecoin pegged to the dollar made its appearance in the market, Terra UST.
The fall of Terra began in 2022, a period characterized by a general bearish trend in the entire cryptocurrency market. The Terra project inaugurated the bad streak in the ecosystem when in April of that year its stablecoin UST lost its parity with the dollar.
The mismatch could be controlled a few days later, but in May it lost parity again and never recovered it. Over the course of a week, the LUNA token accumulated losses of 40 billion dollars, trading in the cents range.
