Do Kwon is a South Korean entrepreneur and software developer, best known for being the founder and CEO of blockchain company Terraform Labs.
The beginnings of Do Kwon
Do Kwon was born in 1991 in Seoul, South Korea. He grew up in a family of entrepreneurs, his grandfather having founded a textile company, and his father also being an entrepreneur. He studied physics and computer science at the University of California at Berkeley, graduating in 2010.
After graduating, Do Kwon worked at Microsoft for a year, developing the Azure cloud computing platform. He then joined McKinsey & Company, a management consultancy, where he worked on technology and business strategy projects. He then left McKinsey & Company to become an entrepreneur.
Terraform Labs and Terra
In 2018, Do Kwon founded Terraform Labs, a blockchain company that was created with the aim of creating innovative decentralised financial applications. The company designed the Terra blockchain, a blockchain that focuses on fast and inexpensive payments. Terra is a third-generation blockchain that uses an advanced technology called Proof of Stake (PoS) to validate transactions on the network.
The Terra blockchain is also associated with a native cryptocurrency called LUNA, which is used to pay transaction fees on the network. This allows users to participate in the governance of the blockchain. The UST (developed by Terraform Labs) was designed to be used as a stablecoin, a cryptocurrency that is pegged to a fiat currency, such as the US dollar, to keep its value stable.
Since its launch, the Terra blockchain has become very popular in Asia, particularly in South Korea, where it is being used by several large companies, including retail giant Lotte. Terra is used by Lotte to provide discounts and rebates using a mobile app called Pay With Terra. This app allows users to spend money in Lotte shops and other participating businesses, using the LUNA cryptocurrency.
Community investment and involvement
In addition to his work at Terraform Labs, Do Kwon is also an active investor in several blockchain and crypto-currency projects such as Polkadot, Oasis Labs and Elrond Network. His involvement as an investor is testament to his belief in the potential of blockchain and cryptocurrency to transform the financial industry.
Do Kwon is therefore very involved in the blockchain and cryptocurrency community. He is often invited to speak at blockchain and cryptocurrency conferences and events, sharing his knowledge and ideas about the future of this industry. He is also a mentor for Web3 startups, providing advice and expertise to help young companies succeed.
Crash of Terra LUNA
Terra LUNA experienced a sharp fall in value in May 2022, with a drop of more than 99.97%. The fall was attributed to a number of factors, including the mass selling of tokens by retail investors, concerns about the platform’s liquidity and wider market problems.
As a result, disgruntled investors filed lawsuits against Terraform Labs and its founder Do Kwon, alleging deceptive business practices and violations of securities law. The plaintiffs alleged that Terraform Labs had made false and misleading statements about the value of LUNA and the security of the platform, thereby misleading investors.
In response to the allegations, Terraform Labs said it had done nothing wrong and was working with regulators to ensure its platform complied with all applicable regulations. Do Kwon also denied the allegations and expressed that the company was working hard to restore investor confidence and advance its goal of creating a decentralised financial infrastructure.
In conclusion, Do Kwon is a well-known entrepreneur and investor in the blockchain and cryptocurrency industry. With the creation of Terraform Labs and the Terra blockchain, he has made great strides in the creation of decentralised financial applications and has played a key role in the popularity of the platform in Asia, particularly South Korea.
However, the fall in LUNA’s value in 2022 and the lawsuits against Terraform Labs and Do Kwon highlight the risks and challenges facing blockchain and cryptocurrency projects, especially in terms of regulation and compliance. Nevertheless, Do Kwon continues to work towards its goal of creating a decentralised financial infrastructure and building investor confidence in its project.
