- Terra’s founder believes that the implosion of the network was set off by an ex-employee leaking insider information.
- The embattled founder is optimistic that the new iteration of the network will prove to be a success.
- Billions of dollars were wiped off in the chaos in May, setting the ball rolling for further implosions across the industry.
While several inquests have been carried out into de-pegging TerraUSD (UST) from the U.S dollar, the project’s founder believes that a mole might be responsible for triggering the chain reaction.
Do Kwon, Terra’s troubled founder, bared it all in an interview with Coinage over the details concerning the first iteration of the network. Kwon conceded that a leak of sensitive information might have sent the sparks flying, leading to the eventual collapse of the industry.
“The attack happened with the four pool migration plan, and the only people that knew that were TFL employees,” said Kwon. “The event happened precisely at the moment when our entire leadership was on flights trying to get to Singapore for a summit.”
He added that the team was hindered from making responses as the event unfolded and broke on social media. He alleged that only a handful knew the exact timing of the withdrawal of UST liquidity of persons, and there remains some “information flows that we’re not aware of to this day.”
The fate of the LFG funds
The Luna Foundation Guard, an organization created to support the Terra ecosystem, raised a large stash of BTC to prop up the UST stablecoin. The funds raised have been subject to speculation by some critics, claiming there has been mismanagement of the funds.
“Deployed bitcoins were wasted – instead of being used to defend the peg, they were used to bail out UST whales after the peg had already failed,” claimed one Twitter user.
Do Kwon explained that the LFG may have underestimated the intensity of UST selling but denied that the funds were used to bail out the whales. He pointed out that the whales were unable to make over-the-counter trades and would be forced to sell their holdings.
Kwon’s interest in Terra runs deep, going all the way to name his daughter after the project’s native token – Luna. His faith in the network has seen him launch a second iteration of the network, which he says will be more community-focused.
Although the odds are stacked against him with the project’s legal team gone, Kwon remains resolute in rebuilding the network. He revealed that he should have been more sceptical about the Terra and its potential flaws, but he does not blame people for shorting the asset.