Do Kwon, the creator of former cryptocurrencies TerraUSD and LUNA, is now under criticism and investigation after his failed venture sparked a major market-wide disaster this week.

The founder of the tokens is known for his active campaign on social networks; nonetheless, it has been uncharacteristically quiet in recent days as the network has turned into a disaster.

Kwon said he had spent the previous days calling various members of the community to let them know that the tokens had lost their value.

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Goodbye Luna

The value of Terra’s native LUNA asset, which was worth around $120 at the start of April, has dropped drastically this week and was trading around 0.03 cents at press time.

Kwon broke his silence on social media early Friday evening with three tweets regarding the disappearance of the LUNA token and its associated stablecoin, UST.

Hours after offering a “Terra ecosystem revitalization plan” to the network’s research forum, Kwon took to Twitter again for the first time in two days to express his regret over how events had unfolded.

Regret and pain. What now? (BrightQuest Treatment Centers)

Do Kwon is devastated

“I am heartbroken by the pain my innovation has caused you all,” he said, adding that he had spent much of his time on the phone with people “devastated by the depegging of the UST”.

This week, TerraUSD (UST), a stablecoin whose value was supposedly pegged to the dollar, lost its peg and never recovered.

Kwon’s words came hours after he proposed via a Terra chatroom to restart the network by distributing 1 billion tokens to affected holders and users.

The simultaneous collapse of the algorithmic stablecoins UST and LUNA resulted in significant losses for market participants. TerraUSD traded at just 23 cents amid a rampant sell-off. This precipitated a broader crash that took the largest cryptocurrency, Bitcoin, to its lowest level since 2020.

UST total market cap at $2.42 billion on the daily chart | Source: TradingView.com

Intruder at Kwon’s wife

On Friday, MoneyToday reported that an unidentified individual broke into the apartment complex where Do Kwon’s wife resides.

After Kwon’s wife answered the door, the individual reportedly inquired about the company’s founder before fleeing.

After the intrusion, authorities in Seoul’s Seongdong-gu district informed Forkast that Kwon’s wife was granted immediate security protection.

Suggested reading | Will Terra LUNA disappear after being delisted by Binance, Bybit and eToro?

Many of those who have lost a huge investment on LUNA are said to be losing their minds. (BrightQuest Treatment Centers)

LUNA investors are now ‘suicidal’

Meanwhile, some investors who invested in LUNA said on Reddit that those who lost everything were suicidal.

In 2021, this individual converted all of his savings into cryptocurrency, with LUNA representing a significant portion of his holdings, the Reddit post said.

In a related report, according to a post on @EmperorBTC Reports’ most recent tweeter, 22 investors killed themselves after LUNA’s price fell near zero.

Authorities have not confirmed the claimed suicides.

– Please seek help if you or someone you know is having suicidal thoughts. You can visit the links below for help –

For example, in the United States, you can call 1-800-273-8255 24/7, or visit: https://suicidepreventionlifeline.org/

A full list of suicide crisis hotlines by country can be found here: https://en.wikipedia.org/wiki/List_of_suicide_crisis_lines

Featured image from Medium, chart from TradingView.com





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