Wednesday, June 19, 2024
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Do Kwon Speaks On Plans to Airdrop Additional Funds to Victims of TerraUSD (UST) Collapse

Do Kwon, the co-founder and CEO of Terraform Labs, has revealed some details surrounding the event that led to the collapse of the algorithmic stablecoin TerraUSD (UST) and plans to airdrop additional funds to victims of the crash.

In the first interview since the historic collapse of the Terra ecosystem, Kwon, who named his only child Luna, revealed that a leak within the Terraform Labs contributed to the major crash.

Kwon said the timing of the planned withdrawal of UST liquidity from the stablecoin’s main Curve pool was supposed to be known by only TFL employees. The drop in liquidity later made it easy for the attacker to make UST lose its $1 peg.

In the course of the interview, he told Coinage that there were probably some information flows they were not aware of to this day.

Read Also: Do Kwon on Terra (LUNA) Collapse: There Have Been No Charges From Korean Authorities

Plans to Airdrop Additional Funds

Speaking on his future with Terra 2.0, Kwon said his intention is to keep building on the new blockchain. However, he believes that he will no longer be at the center of everything, unlike the previous blockchain that collapsed.

Do Kwon noted:

“I think the core of that community still lives on and I think they are primed to launch interesting things on top of Terra 2.0 independent of the things that we do…

“I’m always going to be doing things on Terra and for the Terra community, this is my home and this is where I feel like there’s the brightest future and most of Terraform Labs is still in.”

Although some executives and the legal team abandoned the firm in the middle of the crash, only two developers jumped the ship, Kwon stated.

Read Also: Mike Novogratz Breaks Silence on Terra Collapse, Speaks on Galaxy Digital’s Investment in LUNA

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The Terraform Labs founder is also considering options to airdrop additional funds to victims of the UST collapse, using the Luna Foundation Guard (LFG) reserves of 311 BTC worth around $6.7 million and a lump of Avalanche (AVAX) tokens that were not spent during the fiasco.

Do Kwon said as soon as the UST holders are properly accounted for, the plan is to liquidate the LFG’s holdings and start the process of making the airdrops get to smallholders.


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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
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