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Do Kwon is a former South Korean businessman and software engineer who gained notoriety for his involvement in the failed stablecoin TerraUSD and cryptocurrency Luna. Kwon co-founded Terraform Labs, the parent company of these cryptocurrencies, and served as its CEO until his arrest in 2023.
Kwon was arrested in Montenegro on an international arrest warrant in connection with the $40 billion crash of Terraform Labs’ cryptocurrency, which devastated retail investors. The Montenegro court ruled in favor of Kwon’s extradition to the United States to face trial on fraud charges, rather than to his native South Korea. Kwon was accused of forging official documents and running a Ponzi scheme.
Despite Kwon’s fall from grace, he was once a rising star in the cryptocurrency world. He was known for his innovative ideas and his role in developing Terraform Labs’ blockchain technology. Kwon’s story serves as a cautionary tale for those who invest in cryptocurrencies and highlights the need for greater regulation in the industry.
Do Kwon Early Life and Education
Do Kwon was born in Seoul, South Korea, on September 6, 1991. He attended Daewon Foreign Language High School in Seoul and graduated in 2010. After graduation, he moved to the United States to study computer science at Stanford University.
At Stanford University, Do Kwon received his Bachelor of Science in Computer Science in 2015. During his time at Stanford, he also worked on several projects related to blockchain technology and cryptocurrencies. After graduation, he worked briefly as a software engineer for both Microsoft and Apple.
Do Kwon’s interest in blockchain technology and cryptocurrencies started during his time at Stanford. He was fascinated by the potential of blockchain technology to revolutionize the financial industry and create a more equitable and decentralized world. This interest led him to co-found Terra, a blockchain-based payment platform, in 2018.
In addition to his work at Terra, Do Kwon is also a mentor and advisor to several blockchain startups. He is known for his expertise in blockchain technology and his passion for creating a more decentralized and equitable world.
Career and Terraform Labs
Creation of Terra
Do Kwon is a Singapore-based entrepreneur who founded Terraform Labs, a blockchain-based payment system, in 2018. Terraform Labs is a decentralized finance (DeFi) platform that aims to provide a stablecoin that can be used for everyday transactions. Terra’s stablecoin, TerraUSD, is pegged to the US dollar and is designed to be more stable than other cryptocurrencies.
TerraUSD and LUNA
TerraUSD is one of the most successful stablecoins in the cryptocurrency market, with a market capitalization of over $1 billion. It is used for a wide range of transactions, from paying for goods and services to trading on cryptocurrency exchanges. TerraUSD is built on the Terra blockchain, which is powered by LUNA, Terraform Labs’ native cryptocurrency. LUNA is used to maintain the stability of TerraUSD and is also used for governance on the Terra blockchain.
Partnerships and Growth
Terraform Labs has formed partnerships with several companies to expand the use of TerraUSD. In 2021, Terraform Labs partnered with several e-commerce platforms, including Carousell, Qoo10, and Tiki, to allow users to make purchases using TerraUSD. Terraform Labs has also formed partnerships with several cryptocurrency exchanges, including Binance, to increase the liquidity of TerraUSD.
Terraform Labs has experienced significant growth since its founding. In 2022, Terraform Labs raised $150 million in a funding round led by Peter Thiel’s Founders Fund. The funding round valued Terraform Labs at $1.5 billion. Terraform Labs has also expanded its team, hiring several prominent figures in the cryptocurrency industry, including former Coinbase executive Brett Tejpaul.
Overall, Do Kwon’s creation of Terraform Labs and the success of TerraUSD have made him a prominent figure in the cryptocurrency industry.
Controversies and Legal Issues Surrounding Do Kwon
Terra Ecosystem Collapse
Do Kwon, the co-founder of Terraform Labs, faced numerous controversies and legal issues following the collapse of Terra’s ecosystem in 2022. The ecosystem, which was built on the Terra blockchain, was designed to provide a stablecoin that was pegged to a basket of fiat currencies. However, the ecosystem collapsed due to a number of factors, including the failure of several key projects and the mismanagement of funds.
JUST IN: 🇺🇸 Terra Founder Do Kwon to be extradited to the United States. — Watcher.Guru (@WatcherGuru) February 21, 2024
The collapse of the Terra ecosystem resulted in significant losses for investors who had put their money into the platform. The collapse also led to a number of investigations and lawsuits against Do Kwon and Terraform Labs.
Investigations and Lawsuits
Following the collapse of the Terra ecosystem, Do Kwon faced a number of investigations and lawsuits related to his role in the project. In September 2023, Interpol issued a global red notice for Do Kwon, and the Seoul Southern District Prosecutors’ Office issued arrest warrants for multiple Terraform insiders.
In February 2024, a court in Montenegro ruled that Do Kwon should be extradited to the United States to face charges related to the collapse of the Terra ecosystem. The U.S. Securities and Exchange Commission also filed a civil lawsuit against Terraform Labs and Do Kwon, alleging that they had orchestrated a $40 billion cryptocurrency fraud.
Despite the legal challenges facing Do Kwon and Terraform Labs, the company has continued to operate and has launched several new projects on the Terra blockchain. However, the legal issues surrounding the collapse of the Terra ecosystem continue to cast a shadow over the company’s future.
Public Perception and Media Coverage
Do Kwon, the founder of Terra, has been in the public eye for his contributions to the cryptocurrency space. As with any public figure, media coverage and public perception play a significant role in shaping their reputation.
According to a CoinDesk article from April 2023, the collapse of Terra had a significant impact on Do Kwon’s reputation in his homeland of South Korea. However, the same article notes that there are signs of progress in the country’s crypto scene, which could potentially improve public perception of Do Kwon’s work.
Media coverage also plays a crucial role in shaping public perception. A study on media coverage and public perception conducted by researchers at Michigan State University found that the media often play a role in translating new science to consumers. In the context of cryptocurrency, media coverage can influence public perception of the technology and its potential benefits and risks.
It is essential to note that media coverage can be both positive and negative. A Pew Research Center survey conducted in March 2021 found that about four-in-ten Americans believe news organizations are growing in influence, while one-third believe their influence is declining. This suggests that media coverage can have a significant impact on public perception, but it can also be polarizing.
In conclusion, media coverage and public perception play a significant role in shaping a public figure’s reputation, including that of Do Kwon. While media coverage can be both positive and negative, it is essential to consider the potential impact on public perception when evaluating coverage of a public figure.
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