Do Kwon, the Co-founder of TerraForm Labs (TFL) has repeatedly been on several crypto news for the wrong reasons, in the past couple of weeks. Following the collapse of Terra LUNA (now LUNC), which appeared to be beyond restoration, Do Kwon rolled out a supposed revival plan, named Terra 2.0.
Sadly, Terra 2.0 turned out somewhat dead on arrival, as it has not helped wrecked investors recover their massive losses. Regardless, he has recently expressed confidence in rebuilding a better and stronger Terra blockchain.
Terra Blockchain Comeback: Terra 2.0
May 2022 was indeed a terrible month for the Terra ecosystem, as both of the blockchain’s native digital assets UST and LUNA (now renamed LUNC) sagged. On the whole, the Do Kwon crypto empire suffered a $40 billion crash.
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In consequence, investors and holders of these assets were left to wallow in losses following the unfortunate depegging of the supposed stablecoin, TerraUSD (UST).
After being slammed by affected angry investors coupled with several government investigations as well as lawsuits, the South Korean entrepreneur proposed a comeback naming it Terra 2.0.
Following the success of the proposal, a new Terra blockchain (Terra 2.0) was launched, devoid of the controversial stablecoin TerraUSD (UST). The associated token of this Terra 2.0 now has the ticker LUNA.
Meanwhile, the old Terra blockchain is now renamed Terra Classic, while the native token is labeled LUNC.
More so, a corresponding airdrop accompanied Terra 2.0 launch. Based on the different snapshots taken and other parameters checked, LUNC holders were airdropped partly while anticipating future issuances as stated in the airdrop distribution plan.
Unfortunately, Terra 2.0 LUNA token saw a huge price decline moments after its launch. Therefore, affected Terra 1.0 investors still could not recover their losses.
Meanwhile, Do Kwon, TerraForm Labs, and the LUNA Foundation Guard are facing several investigations and judicial cases from the Korean government and other litigation firms. While some have labeled the crypto entrepreneur a ‘fraudster’, Do Kwon noted that there is a difference between falling and running a fraudulent project.
Recently, a travel ban has been placed on key designers of TerraForm Labs. Similarly, Scott+Scott Attorneys at Law LLP filed a class action against Do Kwon, TFL’s Head of Research, Jump Crypto, Three Arrows Capital, and many other crypto firms.
Do Kwon Stays Optimistic
Regardless of the ongoing challenges and woes faced by the CEO, he remains confident in his team’s ability to develop more solid and better projects. According to people familiar with the matter, developers are working to relaunch applications on Terra 2.0.
In a Wednesday interview with The Wall Street Journal (WSJ), Do Kwon, CEO of TFL said, “I have great confidence in our ability to build back even stronger than we once were.” He added that “Many builders are in the process of relaunching their apps on the new chain.”