Do Kwon, the Terra blockchain project’s brains, has apologized to Terra ecosystem and crypto community members for the recent depegging tragedy.
Terra’s algorithmic stablecoin, UST, depegged from the US dollar last week, causing the price of LUNA, the project’s governance token, to plummet.
All attempts to preserve UST were fruitless, and LUNA plummeted from over $60 to $0.00002 in a matter of days, a 99.9% decline from its high. As they saw their money evaporate into thin air, investors were left scratching their heads.
Following the event, Kwon issued an apology to the Terra community on Friday, expressing his regret that his “creation” had caused users and investors anguish.
Because he did not sell his LUNA or UST stakes, the Terra chairman claimed that neither he nor the project’s linked institutions benefited from the crisis.
Kwon said he and his staff are presently documenting how the Luna Foundation Guard (LFG) spent the Bitcoin reserve during the UST depegging situation as part of his apologies.
LFG reportedly drained $2.2 billion in bitcoin from its BTC reserve to rescue the stablecoin at the time.
While Kwon thinks that decentralized economies need decentralized money, he also feels that UST cannot be that money since community members and investors have lost faith in the stablecoin.
We won’t be able to rebuild Luna’s environment because it has been drastically liquidated and diluted. While a decentralized economy requires decentralized money, he believes UST has lost too much confidence among its users to fulfill that function. The aim now, according to Kwon, should be to protect the Terra community and its developers.