Who is Do Kwon?
Kwon Do-Hyung (@StableKwon on Twitter), more commonly known as Do Kwon, is a South Korean entrepreneur and software engineer who is best known for co-founding Terraform Labs, a blockchain technology company that focuses on the development of the Terra blockchain. Born in South Korea, Kwon pursued his education in the United States and graduated with a Bachelor's degree in Computer Science from Stanford University.
Terraform Labs was established in 2018 by Do Kwon and his co-founder Daniel Shin. The company's primary goal is to facilitate the development and adoption of decentralized financial applications, with a special emphasis on promoting a stable and accessible global monetary system. In order to achieve this, Kwon and his team designed the Terra blockchain, a unique platform that supports stablecoins pegged to various world currencies. The Terra ecosystem gained significant attention for its native utility token, LUNA, which is used to collateralize the value of stablecoins in the network.
Unfortunately in 2022, Terra witnessed a crypto version of a bank run, as token holders lost faith and rushed to exit simultaneously. By May 16th, both the Terra coin and the Luna token faced extreme devaluation, with some media sources labeling it a Ponzi scheme and others referring to it as a rug-pull scam. The collapse of the Luna crypto network resulted in an estimated $60 billion loss within the digital asset industry.
Instead of being backed by an actual US Dollar, the UST coin functioned as an algorithmic stablecoin. Terraform Labs aimed to leverage innovative mechanisms and substantial Bitcoin reserves to maintain UST's peg without relying on the USD as a safety net. The downfall of both Luna and UST occurred when UST's peg to the dollar was lost, which undermined its status as a stablecoin. The risk associated with TerraUSD stemmed from its lack of backing by cash, treasuries, or other traditional assets, unlike popular stablecoins such as Tether.
What is Do Kwon’s Net Worth in 2023?
As Do Kwon is not facing civil charges and only criminal charges, it is unlikely that he will need to forfeit his personal funds. Because of this, his net worth has not changed significantly since he was arrested in late March. As of 2023, Do Kwons estimated net worth is around $50 million.
Is Do Kwon going to jail?
Yes, it is extremely likely that Do Kwon will face serious jail time as he faces extradition back to Korea following his arrest in Montenegro. However, prosecutors have been unable to obtain an arrest warrant for Do Kwon's partner, Shin Hyun-Sung, which could complicate the Korean government's efforts to have him extradited to Korea. Regardless of him not being able to be charged in Korea, he is facing serious criminal charges in the US, where he could potentially be sentenced for up to 120 consecutive years.
How did Do Kwon become rich?
He made a majority of his fortune from his work as the founder of Terraform Labs. Before establishing Terraform Labs, Kwon gained valuable experience as a software engineer at Apple and Google. Intrigued by the world of cryptocurrencies, he left his job in the tech industry to explore the untapped potential of decentralized finance (DeFi).
In 2018, Kwon co-founded Terraform Labs to create a more accessible and efficient financial system. The company's flagship project, Terra, was a blockchain-based payment platform powered by its native cryptocurrency, Luna. Through a successful Initial Coin Offering (ICO), Kwon and his team raised significant capital to develop and expand the Terra ecosystem. As the platform grew, so did the value of Luna, which played a crucial role in Kwon's wealth accumulation.
The Bottom Line
To recap, Do Kwon is a South Korean entrepreneur and the co-founder of Terraform Labs. The Terra ecosystem gained attention with its native utility token, LUNA; however, a loss of faith in the platform led to a massive devaluation and collapse, resulting in significant losses within the digital asset industry. Currently facing criminal charges and potential jail time, Kwon's net worth stands at an estimated $50 million in 2023.