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Following the collapse of both the UST stablecoin and Terra’s native token Luna last month, Terraform Labs CEO Do Kwon is confident about rebuilding the Terra blockchain.
Speaking in a Wednesday interview with The Wall Street Journal, Do Kwon said:
“I have great confidence in our ability to build back even stronger than we once were.”
The Terra network was performing excellently until the 7th of May, when UST fell to $0.35. Meanwhile, the stablecoin was meant to maintain its $1 peg. Luna joined the losing side a few days after the crash, falling from $80 to a few cents on the 12th of May. The implosion is such a historic one in the crypto industry, and many investors are still counting losses. The incident also set the pace further for continued losses across other crypto assets, including the top digital asset, BTC.
Kwon Proposes Rebuilding of Terra Blockchain
Kwon initially proposed the rebuilding of the Terra blockchain in Late May. He also suggested the creation of a new token. His submission attracted a total of 65.5% votes in support of the relaunch. On the other hand, 13.2% voted “no with veto,” while more than 20% voted to abstain. The plan is to create a new blockchain that will airdrop tokens to victims of the UST crash. According to the proposal, the new blockchain will be named Terra, while the current version will be Terra Classic.
Kwon revealed that a lot of builders are already planning to relaunch their apps on the new Terra blockchain after the rebuilding. Meanwhile, the CEO is facing a class-action lawsuit as a result of the collapse. The lawsuit claims Kwon and Terraform Labs sold unregistered securities and made false statements about UST and Luna’s stability. The filing document also names some other defendants, including Jump Trading, Tribe Capital, and GSR Markets. Others are Jump Crypto, Republic Capital, Republic Maximal, and more.
Filed in the US District Court, Northern District of California, the suit seeks restitution. The lawsuit wants Terraform Labs to retune the monetary value of the purchase price of the Terra tokens, including attorney fees.
Ahead of the rebuilding plans of the Terraform Labs, some members of the crypto community said Kwon was running a sophisticated scam. Swan Bitcoin CEO Cory Klippsten referred to the Terraform Labs executive as “a fraudster.” However, Kwon opposed the title, reiterating his confidence in UST. He said he “believes in its resilience and its value proposition.” He continued:
“I’ve since lost these bets, but my actions 100% match my words. There is a difference between failing and running a fraud.”