In the midst of a week of a veritable collapse of Earth's UST stablecoin, its creator Do Kwon said in a Twitter post that he was "heartbroken" that his creations had functionally lost all their value.
1/ I've spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.
I am heartbroken about the pain my invention has brought on all of you.
— Do Kwon (@stablekwon) May 13, 2022
Kwon founded Terraform Labs, creator of the governance token LUNA, stablecoin TerraUSD and several other cryptocurrencies. On the social network of the blue bird, he said that he spent the last few days calling various members of the crypto community in order to find out about the tokens losing all their value. Luna, which was worth nearly $120 in early April, collapsed dramatically this week and traded around 0,03 cents as of last Friday.
I still believe that decentralized economies deserve decentralized money, but it is clear that $UST in its current form will not be that money,” Kwon posted.
TerraUSD (UST), a stablecoin that was supposed to remain pegged to the dollar, lost that parity earlier this week and has not recovered further. Kwon even went so far as to plan a recuperação, which provided for the distribution of property in the network between UST and LUNA holders; acknowledging that Earth's stablecoin, as it stands, is unrecoverable.
Although a decentralized economy needs decentralized money, UST has lost a lot of trust with its users to play the role,” Kwon pointed out. A blockchain which supports LUNA and UST was closed twice by validators in the last day.
The situation started when Terraform Labs and Luna Foundation Guard, the entity in charge of maintaining the value of the UST, hyperinflated LUNA by printing several billion tokens and dramatically increasing the number of tokens in circulation, further accelerating the price of LUNA, in an attempt to save UST. However, the token's market capitalization has dropped from $28 billion in early May to just around $600 million as of yesterday.
Finally, the creator of Terra even said that he did not sell any of his LUNA or UST during the collapse.
