The founder of Terraform Labs shared his opinion on the current market situation and lessons that we should take from last month’s collapse of the Terra ecosystem.
Do Kwon is the founder of Terraform Labs. Since last month he is under huge legal hurdles & public pressure because of the collapse of Terra stablecoin & its native token Luna. Due to the collapse of the Terra ecosystem, a huge number of people lost money and also impacted the whole crypto market negatively.
On 18 June, the crypto industry saw huge corrections in terms of the price of the majority of the Crypto assets. In particular, the Bitcoin price plunged to $18,000. At the time of writing this article, the price of BTC is $18,109.
By taking reference to this correction in the price of Bitcoin and future more correction because of bearish sentiment, Terra founder took to Twitter and said:
“Be the change you want to see. The last month for crypto has lessons that will power the rise of the next-gen of builders to great heights.”
Terra founder talked about the advantages of the decentralized finance (DeFi) sector and associated volatility as the cost of achieving authority over their lives and that these convictions should not be rendered void by the liquidations in the crypto market.
Kwon further added:
“Decentralized finance and decentralized monies protest against state-sponsored violence vs financial sovereignty. Volatility is a price believer pay to achieve that sovereignty. Liquidations should not invalidate those beliefs.”
As a suggestion, Kwon said that the Defi industry needed to create an ecosystem that would always remain stronger and more resilient to those attacks. Kwon also asserted that we have to be focused on one way, whether we want to fight for a sovereign future or higher numbers.
Through the statement that we should focus on “systems that are stronger and more resilient to those attacks”, Terra founder indirectly hinted to create a better business model for Crypto projects. And also indirectly he admitted that the algorithm concept to maintain the value of UST was a Bad Idea, which collapsed the whole Terra ecosystem.