Today marks the anniversary of Do Kwon's infamous tweet, a message that has since become a cautionary tale and meme within the crypto community. On May 9, 2022, Kwon, Terra's founder, tweeted, "Deploying more capital - steady lads," amid the turmoil of Terra's collapse. The tweet signaled a desperate attempt to maintain confidence in the Terra ecosystem, despite UST's lost peg to the dollar and LUNA's plummeting value.
In March 2022, critics had already started questioning Terra's stability, with some even betting against the price of LUNA. However, Kwon seemed unfazed and even taunted his critics on social media.
As Terra's LUNA token reached new all-time highs, influential traders and investors publicly supported the project. By April 2022, Terra's LUNA token hit an all-time high of $119.2, and UST became the third largest stablecoin.
But the good times were short-lived. By early May, UST began to struggle, and signs of capital flight emerged. Kwon's ill-fated tweet came as UST lost its peg to the dollar for the second time, and LUNA's value began to spiral downward.
Gamza KhanzadaevThe Terra founder was initially trying to downplay the severity of the situation while denying that he was on the run in spite of mounting legal troubles.
In March, Kwon was arrested in Montenegro, and he will likely face more than 40 years behind bars if he gets extradited to South Korea.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Dan Burgin
Vladislav Sopov