Terra founder Do Kwon admits fault in UST collapse

Ritu13

Zack: How do you counter the view that "UST is a scam"?

Do Kwon: I don't believe the UST incident involves moral issues, especially in an industry that requires a significant technical background to understand. However, providing a satisfactory answer when everyone is extremely distressed and angry is very challenging.

Zack: The collapse of UST took only 72 hours; were you surprised by the speed of this collapse?

Do Kwon: I never thought such a situation would occur. Since then, I've been working hard to rebuild the ecosystem and community, just as I have been doing for the past 5 years. I haven't found the right words to describe this feeling; many people in the community have lost their money, lives, savings... Many projects built on Terra may have similar experiences, and the situation may even be worse.

Zack: As the creator of all this, it's brutal.

Do Kwon: Obviously, in hindsight, many of the beliefs I insisted on and speculations I made were wrong.

Zack: I think trust is key. Ironically, in many trustless systems similar to UST, there is a question of whether you trust the people creating these trustless systems. What do you feel you need to say to make people believe you?

Do Kwon: If all of this were for personal gain, it would probably be the most foolish way. Why spend 5 years gambling your entire reputation, naming your daughter Luna, and becoming the most hated person on the entire internet in the short term?

I think the only thing I can do and do best is to be honest about everything that has happened and admit mistakes.

Zack: When the Anchor Protocol appeared, its APR was not 8%, but 20%. It is said that some employees found the 20% APY a bit outrageous at the beginning.

Do Kwon: In reality, the internal consensus on interest rates is APR in the thousands.

Zack: In the rapid development process, did Anchor capture nearly $17 billion, reaching your expectations?

Do Kwon: I feel that every day, UST becomes stronger than the previous day.

Zack: There is another operational strategy behind UST that seems to differ from the initial promises of UST and LUNA. This is an algorithmic stablecoin that operates perfectly without the need for reserves.

Starting with Bitcoin and adding various types of collateral, UST seems to truly have the opportunity to become a decentralized stablecoin for all cryptocurrencies.

Yamini003

Weaknesses also need to be avoided.

Iravan774

Didn't expect that.