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Terra crash: Founder Do Kwon gives first detailed interview

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15
Aug
  • Kwon says he made a big bet but seems to have lost the bet.
  • The Terraform Labs CEO insists that his company was never fraudulent.

In an interview that is yet to be aired, Zack Guzman from coinage media sat down with Terraform Labs founder, Do Kwon, to hear his side of the story following the unexpected crash of the Terra network. This interview, titled “inside crypto’s largest collapse,” is the first-time Kwon will speak about what went down as the Terra network crashed.

The sudden crash of the Terra network in May 2022 is unheard-of in the fast-evolving DeFi space. The crash had a substantial negative impact on the crypto market, with other financial markets also feeling its effects. Industry analysts estimate that investors lost over $45 billion to the crash, and the crypto market still feels the crash’s impact more than three months later.

A minute, 30 seconds of the interview trailer shows a solemnly looking Do Kwon. Thus, giving insights into what viewers could expect when the interview finally airs. Many in the crypto community are anticipating hearing from Kwon. This interview is his first detailed interview following the Terra network crash.

In the trailer video, Kwon said the crypto space could be likened to a wild card. He also said there were too many expectations from the UST even though it is only an algorithmic stablecoin. The short video clip hints that some Terra Lab employees would share their insights in the full-length interview.

Nevertheless, some crypto community members think that the interviewer (Guzman) doesn’t have enough credentials and experience to handle an interview of this magnitude. Also, a prominent member of the Terra network, Twitter personality, @FatmanTerra, alleged that Guzman’s interview was a cover-up for Kwon’s misdeeds as Guzman has “been shilling Kwon many years like he’s paid.”

He also said the interview would have been more neutral if it was with Bloomberg or fortune. Hence, they suggest that this interview might be a publicity stunt. However, Guzman declined that he was paid to grant the interview, as many were already assuming.

Many people’s assumptions

Meanwhile, Kwon insists that the Terra network wasn’t a fraud as many people were erroneously thinking. The Terraforms labs CEO said, “I was confident about the bets and statements I made on UST (TerraUSD) ‘s behalf.” Kwon said he firmly believed in the value proposition and resilience of the TerraUSD. However, he has lost these bets since he couldn’t match his words with his actions.

During a short interview with the Wall Street Journal, Kwon said he failed and never ran a fraudulent operation. South Korean authorities have instituted legal actions against Do Kwon and the co-founders of Terraform Labs (the parent company of the Terra network), citing tax evasion and other business malpractices.

Multiple South Korean media outlets report that the authorities have issued a travel ban on Terraform co-founders. In June, the authorities blocked top network developers from leaving South Korea. Many believe that Do Kwon is currently resident in Singapore.

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