Do Kwon pushed into corner amid escalating skepticism over Terra 2.0
m.koreatimes.co.kr
Terraform Labs' Co-founder Do Kwon's Twitter page / Screen capture from Twitter
By Lee Min-hyung
Do Kwon, co-founder of Terraform Labs, is being pushed into a corner amid growing skepticism over its much-hyped Terra Luna 2.0 ecosystem.
Binance CEO Changpeng Zhao was the latest crypto mogul to have stepped up criticism of the Korean developer. He has ordered his exchange team to look into any allegations that Kwon and Terraform Labs face over the recent Luna fiasco.
The decision reflected the escalating controversies surrounding the sustainability of the revived Terra ecosystem after the value of its predecessor suddenly dropped to near zero last month. Kwon then launched the new ecosystem, as part of a desperate bid to compensate for investor loss by issuing new tokens.
However, with Luna 2.0 showing drastic price fluctuations after its launch last week, crypto tycoons and industry officials have issued a series of warning messages against the cryptocurrency, urging investors to pay special attention before buying the new Luna token.
The world's largest crypto exchange operator also reiterated its strong willingness to team up with global investigative authorities to get the facts straight regarding the rumors and allegations that Kwon and his company face.
Daegun, a Seoul-based law firm representing a group of 12 victims from the Luna fiasco sued Kwon and Shin Hyun-sung, another co-founder of the company, at the Seoul Southern District Court, Thursday.
Kwon is known to be staying in Singapore, though his whereabouts have not been confirmed presently. He is still actively promoting the rebranded Terra on his social networking accounts.
The Korean entrepreneur came under heavy criticism across the globe particularly due to his absence from public appearances even weeks after the big scandal erupted. While prices for the Terra stablecoin and its sister token Luna massively dropped each day in mid-May, he did not take any immediate actions, nor did he engage in any real-time communication with investors.
"Terra itself, their project team, was quiet for way too long and not frequent enough in their communications with users," the Binance leader told Fortune in a recent interview. "So, I think all of those things went wrong."
Despite the unceasing lawsuits against the Terraform Labs founder here and abroad, Kwon did not make any hints of him making a public appearance to apologize to investors over the two collapsed cryptocurrencies.
Korean authorities have also launched an investigation into Terraform Labs and its founders. The prosecution has recently summoned a former developer of the company for questioning. But it remains unclear whether the prosecution will be able to summon Kwon for the time being.
m.koreatimes.co.kr
Terraform Labs' Co-founder Do Kwon's Twitter page / Screen capture from Twitter
By Lee Min-hyung
Do Kwon, co-founder of Terraform Labs, is being pushed into a corner amid growing skepticism over its much-hyped Terra Luna 2.0 ecosystem.
Binance CEO Changpeng Zhao was the latest crypto mogul to have stepped up criticism of the Korean developer. He has ordered his exchange team to look into any allegations that Kwon and Terraform Labs face over the recent Luna fiasco.
The decision reflected the escalating controversies surrounding the sustainability of the revived Terra ecosystem after the value of its predecessor suddenly dropped to near zero last month. Kwon then launched the new ecosystem, as part of a desperate bid to compensate for investor loss by issuing new tokens.
However, with Luna 2.0 showing drastic price fluctuations after its launch last week, crypto tycoons and industry officials have issued a series of warning messages against the cryptocurrency, urging investors to pay special attention before buying the new Luna token.
The world's largest crypto exchange operator also reiterated its strong willingness to team up with global investigative authorities to get the facts straight regarding the rumors and allegations that Kwon and his company face.
Daegun, a Seoul-based law firm representing a group of 12 victims from the Luna fiasco sued Kwon and Shin Hyun-sung, another co-founder of the company, at the Seoul Southern District Court, Thursday.
Kwon is known to be staying in Singapore, though his whereabouts have not been confirmed presently. He is still actively promoting the rebranded Terra on his social networking accounts.
The Korean entrepreneur came under heavy criticism across the globe particularly due to his absence from public appearances even weeks after the big scandal erupted. While prices for the Terra stablecoin and its sister token Luna massively dropped each day in mid-May, he did not take any immediate actions, nor did he engage in any real-time communication with investors.
"Terra itself, their project team, was quiet for way too long and not frequent enough in their communications with users," the Binance leader told Fortune in a recent interview. "So, I think all of those things went wrong."
Despite the unceasing lawsuits against the Terraform Labs founder here and abroad, Kwon did not make any hints of him making a public appearance to apologize to investors over the two collapsed cryptocurrencies.
Korean authorities have also launched an investigation into Terraform Labs and its founders. The prosecution has recently summoned a former developer of the company for questioning. But it remains unclear whether the prosecution will be able to summon Kwon for the time being.
