The CEO of Terraform Labs (TFL), Do Kwon – appeared in an interview which was his initial since the collapse of the LUNA (Terra) – and disclosed some more details regarding the incidents related to the respective crash. Nonetheless, it is difficult to validate that information independently.
Do Kwon Acknowledges Jumping in UST Risks without an Adequate Plan
A segment of the respective interview was issued formerly this week in which he pointed toward drainage within the firm which he attributed to the disastrous death spiral of TerraUSD (UST). The exclusive installment increases on the respective view, referring to the particular parts of the information that should only have been known by the staff of TFL. He added that the timing of the scheduled UST liquidity withdrawal from the chief Curve pool of the stablecoin was just known to the employees of TFL.
The respective liquidity decline made it convenient for a hacker to push away the stablecoin from its one-dollar peg on 7th May. He stated that the whole leadership group of the platform was moving toward Singapore and doing meetings to correct the earliest response of the firm. Thus, there was perhaps some leakage of information and the leadership of the platform was not aware of that, Kown asserted.
A lot of speculation has been done on the subject dealing with the consequence of the enormous funds collected to assist the peg during the time of emergency through the Luna Foundation Guard (LFG). Firstly, the group miscalculated UST’s selling speed and Kwon mentioned that they were not specifically concerned about it. Nevertheless, as UST’s complete volume was being dumped, they sensed that there is a need to deploy the Bitcoin reserves of LFG, as per Kwon (who refuted the utilization of funds for cashing out the large UST holders).
Kwon Does Not Give up on the Market
Kwon claimed that he wishes to carry on moving ahead without going anywhere. However, the Terra blockchain’s next incarnation will be additionally focused on the community rather than providing him the maximum attention. As per him, the majority of the community participants are even now of the view that they are well-informed about introducing interesting products to outcompete Terra 2.0.
In his words, he is always devoted to doing more and more advancements on Terra to facilitate the community. He said that the venue was his home and he considers that it has an optimistic future. As Kwon puts it, just 2 developers have exited the firm notwithstanding the crash. He’s also pursuing the options dealing with the airdropping of extra funds to compensate the people influenced by the UST collapse.
This is to be done by the utilization of 311 BTC (nearly $6.7M) existing within the LFG reserves as well as a proportion of AVAX (the local asset of Avalanche), which did not have their utilization at the time of crisis. The Terraform Labs’ founder even pointed out that he even lost several bets on LUNA’s future price with Twitter-based skeptics and one of them comprised $10B with GiganticRebirth (a trader).
