Replied: Terra Ecosystem Revival Plan by Do Kwon

In reply to this "panic-driven" Do Kwon proposal:

https://agora.terra.money/t/terra-ecosystem-revival-plan/8701

I gently disagree with this panic proposal and all these panic-driven, emotional actions are not helping.

For example, inflating $LUNA, which resulted in a complete $LUNA devaluation / meltdown, to try to save the UST peg was a huge mistake. This was done in panic-mode and of course, it failed and wrecked $LUNA.

What should have been done in my view was this:

1. Delete the $LUNA-UST pegging algorithm and let $LUNA exist, and the entire great TERRA LUNA ecosystem, without a peg to UST. This should have been done to avoid the $LUNA death spiral and attack vectors.

2. Do Kwon and team should then have fully collateralized UST with BTC (and/or fiat) and put their money where their heart has been.

The results, if this move had been made before the huge $LUNA inflation mistake was made would have been to have two decoupled coins, LUNA and UST.

• Both would exist on their own.

• LUNA holders would have their own coin and the entire TERRA system to enjoy down the road.

• USD holders would have their own stablecoin backed by BTC (and fiat) from Do Kwon and team

If this move had of been made when the attack was discovered and the peg lost, everyone would have been much better off.

Now that "the team" has wrecked $LUNA with their panic-action of debasing $LUNA, which had no good effect on UST, the ecosystem is wrecked. Since the community believes in this model, let is exist without being pegged to UST.

This was the best way ahead, in my view. However, after the panic-wrecking of $LUNA by debasing $LUNA to try to save the peg, it's going to be much harder to build back the TERRA ecosystem.

Please do everyone a favor and stop trying to fix the "algorithmic stablecoin" cancer which has already wrecked $LUNA.

Keep it simple and let the future of the great Terrian Ecosystem thrive without being pegged to anything.

Make the UST as whole as possible by severing it from $LUNA and then Do Kwon and team collateralize UST and make it a true stablecoin backed by real assets and not smoke-and-mirror algorithms which can be wrecked.

Reference:

https://agora.terra.money/t/terra-ecosystem-revival-plan/8701/2395

Looks like folks in Singapore have reported Do Kwon to the police there.

I hope this fraudster is behind bars soon. After doing a lot of research into this, I am convinced that Do Kwon defrauded Terra Luna investors. Scammers like this give blockchain a bad name and hurt many innocent people.

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Reference:

https://www.reddit.com/r/SingaporeRaw/comments/up8y25/a_police_report_have_been_made_against_do_kwon_on/

the government there are keen death penalty proponents ... he better hope there's not one for fraud ....

Here is the gist of the Do Kwon fraud in this slide, courtesy of James on InvestAnswers.

You can see that on 14 May Do Kwon (et al) diluted the value of every $LUNA coin by around 19,000 times. That means, of course that if anyone held 1 $LUNA on 1 May, on 14 May, that 1 #LUNA was transformed in value into 0.00005287648 $LUNA relative to the market cap of $LUNA which was already falling.

Screen Shot 2022-05-16 at 9.20.11 AM867×425 117 KB

In my view, this is not a "mistake" on the part of Do Kwon. It was a fraud on all $LUNA investors. No one should be permitted to do this kind of "cryptocurrency circulation inflation" without regulatory approval. Do Kwon destroyed the financial lives of those who trusted him. His action of inflating $LUNA to the tune of nearly 19,000 fold was more devastating to $LUNA than the original trade/attack.

Do Kwon must be held accountable for his actions. This was a breach of $LUNA cybersecurity by Do Kwon et al on all $LUNA investors.

Reference:

See Also:

https://messari.io/asset/terra/chart/sply-circ

Looks like Do Kwon is in big trouble:

Now it appears Do Kwon is using his vast wealth to avoid the legal authorities in South Korea; and he is basically "in hiding" although he says he is not "in hiding", like all criminals on the run say.

It looks like within weeks or days, South Korea will revoke his passport; but the problem for that is that it is trivial to get a passport from another country with the wealth he has accumulated via his crypto frauds and schemes.

By going on the run, Do Kwon is basically admitting his criminal way, in my view.

This guy is an unethical, arrogant dirt bag, really:

https://www.bloomberg.com/news/articles/2022-09-17/luna-and-terra-s-do-kwon-not-in-singapore-local-police-say

The South Korean prosecutor’s office is also seeking permission from the country’s Foreign Ministry to have Kwon’s passport revoked. If that happens, Kwon would have to return to Seoul within 14 days, according to policy.

I hope they nail this crypto-fraudster sooner than later. Justice is coming for Do Kwon.