Do Kwon Might Redevelop Terra from Old Blockchain to New

Do Kwon's Terra revival plan is highly ambitious but difficult to execute after the crypto crash

Disaster struck the CEO of Terraform Labs, Do Kwon, when the Terra blockchain (LUNA) witnessed a crash that was unforeseen by him. It resulted in pushing down the UST, Terra's stablecoin to the lowest depth. But he seems to be a man with an ambition to recover soon, at least if his recent interview with The Wall Street Journal is to be followed. Where does he gain confidence to launch Terra 2.0? It is basically the peer process, as a survival strategy, of constant redevelopment and restructuring of the existing blockchain technology. One of his goals is to make the blockchain wholly community-owned in the stablecoin.

Do Kwon's confidence is really striking in the sense that he has always maintained that he has lost almost all of his money due to the stablecoin crash. While one may respect his conviction about the recovery the fact is however confident he might be in his ability to come out of the crisis he faces a stiff challenge in bringing back the confidence of the investors. The past crypto investors have incurred heavy losses and they may not readily opt for his plan again. This apart he has to woo the new crypto investors with this stablecoin who will also be well-informed about the crypto crash.

Terra 2.0: Assessing Do Kwon's Revival Plan

To go a little deeper into the issue, Do Kwon's assertion to match his words with the deeds, as it comes out of the interview, is sourced from his assertion that the stablecoin crash was not a result of fraud but of failure. He is bent on making a distinction between the two, by implication 'fraud' being something criminal with a preplanned motive, and 'failure' being an outcome not designed beforehand. At the same time, it is worth noting that Kwon and his firm have been accused of 'fraudulent and illegal' dealings by no less than ninety Korean investors who describe themselves as 'victims'.  The legal proceedings for the stablecoin to this effect are already existing in the process. The Korean Government has enforced a travel ban on the employees of Terraform. Kwon himself has not been able to escape the label of being a 'fraudster' and significantly such labeling has come from some of the powerful leaders of the cryptocurrency industry. Still, he decided to come back with Terra 2.0 to gain the trust of crypto investors.

Even if the officials of Terraform or Terra 2.0 inform that they are taking legal action to contest such accusations the fact remains that it does not do enough to save the price of LUNA/LUNC from falling further. Only time can tell whether Kwon's words of assurance will indeed come true, reversing the uncertain and turbulent Terra ecosystem he is confronting at the moment. Crypto investors also have to wait for the shift from the existing blockchain to the new blockchain network.