"I Will Create Another Blockchain" Kwon Do-hyung Dreams of Terra's Revival

Experts Say "Experiment Must Be Stopped"

TerraLoom Labs CEO Kwon Do-hyung. / Photo by Yahoo Finance (YouTube video capture)

[Asia Economy Reporter Jeong Hyunjin] Kwon Do-hyung, CEO of Terraform Labs, which issues the Korean virtual currencies TerraUSD (UST) and Luna, has proposed reorganizing the failed stablecoin Terra project into a new network to create another blockchain. Experts have expressed skepticism and criticized the need to stop experiments such as Ponzi schemes and algorithm-based stablecoins.

According to Bloomberg on the 16th (local time), CEO Kwon stated on his Twitter and the Terra homepage that he wants to eliminate the TerraUSD coin and create a new network by copying the code of the Terra blockchain. He added that through this, he wants to distribute new tokens to Terra supporters, including core application developers, computer owners who placed trade orders on the Terra blockchain, and TerraUSD holders.

This is CEO Kwon's second plan to revive the Terra ecosystem. Earlier, on the 13th, CEO Kwon asked members for their consent, stating that he would restart the system by redistributing ownership of the Terra blockchain network to TerraUSD and its sister cryptocurrency Luna holders through 1 billion new tokens. He said, "What we must protect now are the communities and developers who make the Terra blockchain space valuable," and added, "I am confident that we will form a consensus on the path forward and find a way to rise again."

[Image source=Reuters Yonhap News]

Despite CEO Kwon's determination, Bloomberg reported that cryptocurrency experts view the situation as not so hopeful. Zhao Changpeng, CEO of Binance, the world's largest cryptocurrency exchange and an early investor in Terra, tweeted that CEO Kwon's proposal to copy the Terra blockchain, known as a 'fork' (where a blockchain splits into multiple branches creating a new version), "creates no value."

Going further, voices in the cryptocurrency industry are growing louder, calling to stop unsustainable nonsense and experiments such as Ponzi schemes and algorithmic stablecoins. When Anthony Sassano, an Ethereum investment educator and advisor, posted such content on Twitter, Ethereum developer Vitalik Buterin responded, "I strongly support this proposal." Buterin criticized the term "algorithmic stablecoin" itself as an exaggerated promotional term and said that small investors who suffered losses from the TerraUST and Luna crash should be rescued first.