Do Kwon, the co-founder of Terraform Labs, said he had lost almost his entire net worth after the collapse of the TerraUSD (UST) stablecoin and sister token Luna, The Wall Street Journal reported.
When Luna was trading at around US$100 earlier this year, Kwon’s crypto assets had reportedly made him a billionaire on paper. However, the said that the loss of the bulk of his net worth “doesn’t bother” him as he leads “a fairly frugal life.”
“I made confident bets and made confident statements on behalf of UST because I believed in its resilience and its value proposition,” Kwon told The Wall Street Journal. “I’ve since lost these bets, but my actions 100% match my words. There is a difference between failing and running a fraud.”
The Terra ecosystem crumbled last month after UST – the project’s algorithmic stablecoin, which was meant to maintain a 1:1 peg to the U.S. dollar – lost its parity to the dollar, wiping out US$40 billion in investors’ wealth.
See also: Despite the Terrapocalypse, huge crypto staking rewards are still a draw
Editing by Arpit Nayak
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