Do Kwon, the CEO and co-founder of Terra (LUNA) and UST stablecoin, has brushed off claims of draining liquidity out of LUNA and UST. Unsubstantiated reports on June 11 alleged that Kwon took out $80 million every month for nearly three years.
This information came to the fore after a Twitter thread by @FatManTerra shared it on the microblogging platform. He alleged that Kwon with Terra influencers drained funds, and managed to artificially maintain the liquidity. FatMan claimed that Do Kwon cashed out $2.7 billion (33x$80 mn) over the span of mere months thanks to Degenbox. He described it as the perfect mechanism to drain liquidity out of the Terra and the UST system, and into hard money like Tether’s USDT.
But Do Kwon said it’s “categorically false”. He said it refutes the claims that he still holds most of his LUNA holdings, procured during the airdrop. Kwon also reiterated that his income over the past two years has “only been a cash salary” from TerraForm Labs. He said the only thing he has earned is a nominal cash salary from TFL. Kwon deferred taking most of his founder’s tokens because he didn’t need them. Moreover, he didn’t want to cause unnecessary finger-pointing that he has too much.
Terra’s co-founder told the community that spreading falsehoods only adds to the pain of all LUNA investors. Kwon said he hasn’t said much because he doesn’t want to play the victim. He shared that he lost most of what he had in the crash too. Kwon reiterated that he doesn’t really care much about money.
A developer from Anchor Protocol, Mr. B, warned Kwon about the unrealistic high-interest rates. He said the platform was designed only to offer an interest rate of 3.6% for keeping the Terra ecosystem stable. However, it was changed to 20% just before the release. The developer suggested for the Terra ecosystem to lower the interest rates, but was rejected.