Note that the state of affairs of the Terra ecosystem is terrible, even despite the fact that the project has been rebooted. In particular, the old LUNA token is still lagging behind its peak by almost 100 percent, because it’s not even worth a hundredth of the price. Here is the relevant LUNC chart.

Terra Luna Classic exchange rate chart for the last six months

“Stablecoin” TerraClassicUSD (USTC) is valued at 2 cents, although the coin should be worth $1.

TerraClassicUSD USTC exchange rate chart for the last six months

Finally, the new Terra LUNA is valued at $2. And that’s almost 90 per cent below the cryptocurrency’s record value, which is worse than the drawdown results of many coins at this stage of the market crash.

Price performance of the updated Terra LUNA token

What’s going on with the creator of Terra?

The interview was conducted by journalist Zach Guzman, who shared some details on Twitter about Coinage management’s very intention regarding the conversation with Kwon. Here’s his quote.

I’ve held UST and LUNA – those coins that have depreciated to zero. Kwon’s company Terraform Labs was an investor in Coinage’s holding company. These facts create an obvious potential conflict of interest. While I would argue that this doesn’t change anything, this is literally how bias works, it makes me view the story through rose-coloured glasses and give its subject the benefit of the doubt.

The journalist also pointed out that he and Kwon are not friends, and Coinage was allegedly preparing a piece critical of Terraform Labs’ shortcomings even before the Terra collapse. However, we won’t get the exact details anytime soon, so we’ll just have to assume the interview itself is the only source with Do Kwon’s point of view on the events.

And here is the full version of the first part of the interview. We recommend you watch it if you speak English.

So, according to Terra’s creator, the crypto project’s collapse may have been due to internal insider sabotage, as some Terraform Labs employees had access to “certain information”.

So if you ask me if there was a mole at Terraform Labs, my answer is probably yes. Has anyone tried to take advantage of it? I think so.

Terra founder Do Kwon

“Certain information” in this context is the transfers of funds between the various Terra trading pools. As a reminder, they were one of the factors behind the loss of parity of the TerraUSD algorithmic stabelcoin against the dollar. According to CryptoSlate’s sources, the transaction information was supposed to remain inside the project, but it was the mole that leaked.

After one of Guzman's questions, Kwon also reiterated that Terra was not a pyramid scheme or a fraudulent scheme. His argument is that early investors in the project had also suffered huge losses. And Kwon's own fortune has devalued catastrophically, although he wouldn't share exact figures.

Speaking of fraud. During an interview, a journalist asked Kwon how he would define fraud. The Terra creator’s answer has already become a meme among some crypto-enthusiasts. Here, for example, is a snippet from a video shared on Twitter by crypto-enthusiast FatMan. Here’s a translation of Kwon’s response to the question.

Well, if you knew about something that wasn’t true and claimed it was something that was true for personal enrichment or something else, that’s fraud.

The irony is that Kwon likely knew about many of Terra’s shortcomings long before the collapse. At least that’s what Terraform Labs employees, who were questioned by South Korean law enforcement authorities as part of the investigation, have previously said, and the startup is based in that country. For some reason Kwon himself was not touched by the investigators, as he himself said in an interview. And that sounds strange, because it would be too illogical to interrogate only individual developers and not the company’s founder.

The interview itself left even more questions from the cryptocurrency community, which provoked a negative reaction. Do Kwon didn’t come forward with a straightforward confession, didn’t say anything sensible and tried to “spin it out” in a discussion with Guzman. And the fact that Kwon is being interviewed at all, rather than detained, is perplexing to the cryptocurrency community.

As a reminder, one of the developers of cryptomixer Tornado Cash was previously arrested in the Netherlands and placed on the US government's sanctions list. At the same time, Kwon's actions have already resulted in the loss of billions of dollars to investors, although for some reason it does not embarrass the authorities.

Terra creator Do Kwon

According to crypto-enthusiast Eric Conner, this is an important detail. After all, while Kwon is “having fun” at large, even though he’s guilty of multi-billion dollar losses, someone else is already in jail for simply writing code for a platform focused on the privacy of cryptocurrency users. Here’s his cue.

Do Kwon has literally defrauded investors of billions of dollars and can now throw parties. The developers of Tornado Cash have written code to ensure privacy and now fear for their lives. The system is completely broken, it’s time to fix it.

The cryptocommunity’s outrage is understandable. It’s possible that Do Kwon still faces a lengthy legal battle and huge compensation costs for investors. But that will come sometime later, and for now the public needs more details about Terra’s collapse from the mouth of the ecosystem’s creator.

A prominent member of the cryptocurrency community under the nickname Bitlord, who has 218,000 followers, commented on the situation. Here’s his quote.

The Do Kwon interview was a paid marketing propaganda created to make him look better. And with the help of a media company he invested in.

The fact that Terraform Labs representatives invested in Coinage was confirmed by Guzman himself. The detail has therefore predictably embarrassed members of the blockchain community.

There has been plenty of criticism among commenters under the YouTube video as well. Here’s a user quote that garnered more than a hundred likes.

You didn’t even ask pointed questions. We already knew almost everything that was said in the interview. You should have asked him about his future plans. What will happen with LUNA 2.0? Will the USTC peg to the dollar be stabilised? Will he make another Stablecoin? Does he know what’s going on with $LUNC and what he thinks of the Terra Rebels community? Realistically, man, you had a good opportunity to finally interview him and you blew it.

Critique below video interview with Do Kwon


We think the interview idea is hardly a good one, and the conversation won't improve Do Kwon's reputation. You can expect the predictable anger and criticism from the cryptocurrency community here, as the community as a whole has lost billions of dollars due to the failure of the Terra ecosystem. At the same time, it doesn't look like Kwon is remorseful about the situation, as he and the journalist regularly smile during the interview. We would like to believe that we will be able to wait for an unbiased interview with Do, which will answer all the burning questions.

Stay tuned to our millionaire cryptochat. There we will discuss other important developments related to the world of decentralisation.