What's next for TerraForm Labs and Luna?
Good morning Lions I trust you are safe and well and enjoyed my new introduction sound, thought it added to the overall experience.
It has been an interesting week with the broader crypto market showing signs of recovery once again leaving disenfranchised people off side. Many expected Crypto to end but as we have come to learn there is more institutional investers than we would like currently playing in the Decentralised Finance world, but more on that soon.
There are currently discussions on forking the network and taking a snapshot of people prior to the May 6th attack and despite sounding like the Wolf of Wall Street "I will not leave" Do Kwon has conceded that future UST will be collateralised. This will no doubt also see UST growing a lot slower or atleast appearing in liquidity pools alot slower.
Kwon has to do something
The issue Do Kwon faces is that TerraForm Labs is a registered company in South Korea and more recently in Singapore which have some of the strictest punishments for financial crimes. If Do Kwon doesn't rebuild and make good on his investors than chances are he is going to need to leave the country real quick or face some heavy penalities.
The question on everyones mind is, who will get what?
Institutional investors Beyond Luna
The events that unfolded are not illegal (yet) because crypto is unregulated but if mainstream firms pulled that on a exchange they'd need to be on the next flight to Panama or risk heavy penalites or jail.
The question needs to be asked, should the sector be regulated against such behaviour as the Billion or so dumped caused hundreds of thousands to lose money and a company to collapse. Noting that the full responsibility lays with Do Kwon as it is his company and he should have had fail safes in place to freeze the network or prevent such attacks.
Do Kwon's Safety at risk
Reports are circulating that Do Kwon's personal safety has been put at risk with someone breaking into his home which is a frighening debacle to be in. Understandably alot of people have lost alot of money but these are the risks when we play in this market. Not to sound dismissive as I also lost alot of money which was going towards my own project, furniture for the home I am building and a short holiday.
But my thoughts are with not only the investors but the developers on Luna as over the past six to twelve months I have personally met and shared articles about the teams behind the scenes developing and pouring their hear and soul into what they see is the future.
You can not help but feel for them as they have seen their projects and their jobs destroyed and reports are going around that people are self harming. Please, I would urge anyone in this situation to reach out and speak with someone. If you need to please feel free to DM on Twitter or Discord I would be more than happy to talk with you through this rough period of time.
The dangers of Crypto
Furthermore, Luna's collapse is one for the history books and the first big enough collapse the be felt right across the broader crypto markets. Even if Do Kwon can rebuild Terra (Luna) Network it is going to be some time before people retrust the protocol but this being Crypto we have seen others return from collapse so anything is possible.
What are your thoughts? do you think Luna will make a comeback or is it dead in the water?
This is not financial advice and readers are advised to undertake their own research or seek professional financial services