Do Kwon: “Crypto is still like the wild west”

The CEO of Terraform Labs broke a long silence after the UST crash and claimed that he overestimated his project, which in the realities of the market was not reliable enough.

Terraform Labs CEO Do Kwon, in an interview with Coinage Media co-founder Zack Guzman, stated that UST was intended to be a reliable stablecoin. Kwon justifies his confidence, which he now admits was “super-irrational”, in the success of the Terra ecosystem in the market as its capitalization approached $100 billion.

“Terra was supposed to be a stablecoin. I never thought about what might happen if it fails. However, this is not a scam or a pyramid scheme. Cryptocurrency is still like the wild, wild west,” Kwon said.

According to him, the Terra project was not a Ponzi scheme, since early investors suffered the most from the collapse. Although the paper billionaire cannot quantify his losses, Kwon described them as “limitless”. The head of Terraform Labs also revised many of his statements about the stablecoin market.

“It’s hard for me to read my comments now, but when the algorithmic stablecoin began to become the industry standard, I bet big and lost,” admitted the head of Terraform Labs.

The creator of Terra said that there was probably an insider at Terraform Labs who took advantage of information about protocol vulnerabilities for profit. Without naming anyone by name, he added that it was his fault anyway.

“I, and I alone, are responsible for any shortcomings that might be discovered and leaked to the short seller for profit taking,” Kwon said.

Recall that the effect of the collapse of the Terraform Labs project led to a mass panic of investors and a fall in the cryptocurrency market, which is comparable to the consequences of the bankruptcy of the financial corporation Lehman Brothers in the banking sector.