This Is What Do Kwon Did Before Terra LUNA Falls

CEO of Terraform Labs, Do Kwon. (photo; Twitter screenshot)

JAKARTA – The founder of Terraform Labs, Do Kwon, plans to restore the Terra ecosystem with a hard fork or open a new branch for his blockchain. The effort will result in a new Terra coin (LUNA), while the current LUNA coin will change to Luna Classic (LUNC).

The recent collapse in LUNA and UST prices forced Kwon and developers to work hard to recover. Even so, the cause of Terra's decline is still unclear.

According to Bitcoin.com News, Do Kwon reportedly shut down Terraform Labs in Korea days before the collapse of cryptocurrency terra (LUNA) and stablecoin TerraUSD (UST).

According to the registry office of South Korea's supreme court, Terraform Labs Korea decided to dissolve its Busan headquarters and Seoul branches at the general shareholders' meeting on April 30, Digital Today reported. The company, which is owned by CEO Kwon Do-hyeong or Do Kwon, acts as a liquidator.

"On May 4, the headquarters of Terraform Labs Korea was disbanded and on May 6, the Seoul branch was disbanded," reads a statement from Digital Today.

A few days later, on May 9, the UST lost its bond against the US dollar and the price continued to fall. As of writing, UST is trading around 0.08 US dollars. Terra's main coin, LUNA, was also dragged down sharply until it penetrated 100 percent.

Terraform Labs is a company incorporated in Singapore, but registered to do business in South Korea as Terraform Labs Korea, with headquarters in Busan and branches in Seongdong District in eastern Seoul.

Kwon founded Terraform Labs Korea on June 21, 2019. On September 26, 2019, Ticket Monster (Tmon) founder Shin Hyun-sung joined the company as a second co-founder. However, he resigned on March 2, 2020, leaving Kwon to serve as CEO of Terraform Labs.

Blockchain data analytics firm Elliptic gets a hit when UST and LUNA crash. Elliptic revealed that Luna Foundation Guard (LFG) had sent its Bitcoins, which were used as reserves for UST, leading crypto exchanges Binance and Gemini.