The CEO of Terra Labs, Do Kwon, seems to have other issues hanging around his neck beyond just the crash of Terra and its stablecoin. The embattled CEO seems to be catching heat from a number of different angles, ranging from investors, crypto communities, and the government of South Korea.
South Korean popular news outlet Digital Today reported that information obtained from the South Korea Supreme Court Registry Office stated explicitly that the CEO has successfully ensured the liquidation of two branches and the entire LUNA company.
LUNA’s two offices in Busan and Seoul were already slated for dissolution during the company’s stakeholders’ meeting held on April 30, with the office shutdown planned for May 4 and May 6, respectively.
This latest revelation has raised suspicion within the cryptocurrency ecosystem as
their potential correlation to the events comprising the financial obliteration of the Terra (LUNA) and UST stablecoin during the early hours of May 10.
Terra labs are presently putting forward a framework that will help revive the Token and stable coin, which is based on the second amendment of the governance proposal 1623.
Should these proposals be approved, it will enact three revisions to the current system: it will increase the genesis liquidity from 15% to 30% to “reduce future inflationary pressures,” kickstart a new liquidity profile for pre-attack LUNA, and decrease funds to post-attack UST holders.
Kwon wrote in the latest proposition paper that “$UST peg failure is Terra’s DAO hack moment — a chance to rise anew from the ashes,” with a network launch slated for May 27.
It is yet to be seen where the present drama of LUNA will lead, for the company, investors, and the CEO. However, one thing is certain: the effect on the crypto space will likely make people lose trust and could possibly lead to the birth of the speculated regulations from financial bodies.
Regardless, as CEO, Do Kwon must do everything within his capacity to ensure the company gains the trust of the public again. Do Kwon was once one of the poster boys for the crypto ecosystem, but public opinion may make him into a villain.
Featured Image: Megapixl @kvitzln
