Do Kwon is the founding father of Terra and the face of the ecosystem. He’s additionally extraordinarily lively on Twitter, incessantly discussing Luna, UST and the deserves of the algorithmic peg.
Tone
Nicely, I say discussing, but it surely’s usually removed from a dialogue. He typically takes a really aggressive line with accounts enquiring in regards to the sustainability of the peg, the long-term viability of Anchor and lots of different (legitimate) questions in regards to the experiment that’s UST.
6/ On depeg threat – I’ve grown fairly uninterested in arguing with idiots on Twitter on whether or not UST can stay secure in bear.
So quickly I’ll suggest creating multi billion greenback reserves in decentralized property (BTC and others) in an try to save lots of myself time. Extra to observe.
— Do Kwon ? (@stablekwon) November 20, 2021
Yesterday, his UST stablecoin de-pegged to 60 cents. As I write this, it’s again to round 90 cents, however the worry that the arrogance within the system is irreparably broken stays. And one of many largest causes I’d be involved in regards to the means of UST to get better within the long-term is the perspective of Do Kwon, in addition to his silence throughout this entire debacle.
Shortly earlier than issues received actually ugly, he posted the beneath, in his typical, informal tone.
Im truthfully getting fairly uninterested in “unlocks have been a shock” bs, for those who can’t trouble to lookup fundraising historical past or perceive i give upside in luna to terra employees im sorry you’re ngmi
— Do Kwon ? (@stablekwon) April 27, 2021
Then, nothing. Radio silence. His excuse when he lastly resurfaced at the moment, almost 24 hours later? “Didn’t imply to be so quiet – wanted razor focus to ship, thanks everybody for the assist”. Hmmm.
I’ve been arguing for some time that Do Kwon doesn’t present the temperament, transparency or maturity to guide an ecosystem that’s value billions and billions of {dollars} (Luna was value over $40 billion and UST $18 billion earlier than all of it imploded).
Deploying extra capital – regular lads
— Do Kwon ? (@stablekwon) May 9, 2022
Centralisation
However perhaps whether or not he’s appropriate or not isn’t the purpose. That is marketed as a decentralised stablecoin, which is the very motive that it utilises the algorithmic peg. So why do we have to rely on the phrase of 1 particular person? Why do we have to await the Luna Basis Guard (LFG) to deploy their Bitcoin reserves in a particularly discretionary and opaque manner? Is that the very definition of centralisation?
Riddle me this – what’s the distinction between LFG’s deployment of their Bitcoin reserves and the Fed’s open market operations with the US greenback?
This has the potential to be one of many largest disappearing acts of wealth in historical past, if Do Kwon and the LFG can’t persuade the market that the peg will be trusted once more going ahead. After such a public run on the financial institution, it will likely be an unimaginable comeback if he can handle it, and I definitely will tip my hat to him.
I simply worry the silence from him throughout yesterday’s meltdown says measures in regards to the extent of the harm, and the way deep this disaster actually is. When discussing a run on the financial institution, as soon as the arrogance is gone, the sport is up. So whether or not that confidence will be restored or not is value all the pieces right here.
With that in thoughts, Do Kwon’s subsequent tweet may very well be a very powerful in Terra’s historical past.
