The digital currency has been rising over the years, and prominent individuals behind it ensure it still circulates. Do Kwon is one of those individuals. Let’s find out some of his accomplishments, including his net worth and primary source of wealth.
Who Is Do Kwon?
Do Kwon is well-known in the cryptocurrency sector. He co-founded Terraform Labs, a business that attracted attention for developing the Luna and TerraUSD. He graduated from Stanford College and gained much knowledge in the technology sector.
His experience in the tech sector significantly impacted the creation of Terraform Labs and its cryptocurrency offerings.
One of the most significant incidents in the history of the cryptocurrency industry was the crash that affected the Terraform Labs-developed cryptocurrencies UST and Luna in May 2022.
The abrupt fall cost investors billions of dollars in damages and reduced the market capitalisation by nearly $50 billion in just one week.
Many investors who suffered significant financial losses due to the collapse have filed lawsuits against Do Kwon and Terraform Laboratories, among other defendants, in South Korea, Singapore, and the US.
Kwon and his business are accused of fraud, misrepresentation, and other securities law breaches. Do Kwon and his group have thus become the subject of intensive regulatory investigations and scrutiny.
What Is Do Kwon’s Net Worth?
Do Kwon’s net worth has been estimated to be between $135 and $150 million in 2023 following the demise of Terra in May 2022. This is based on the ownership of the Luna Foundation Guard’s Bitcoin wallet, which he co-founded. Given his depth of knowledge and involvement in the cryptocurrency sector, Kwon’s net worth might be far higher.
Do Kwon is believed to control the Luna Foundation Guard wallet. This came after Kwon, thought to be evading the South Korean government, withdrew a sizeable sum of bitcoin from an ATM in Serbia.
Because of his involvement in the crypto sector and his co-founding of Terraform Labs, Kwon likely has access to other worthwhile investments and cryptocurrency assets, which might raise his net worth above the projected range. He may have received a sizeable salary and shares from Terraform Laboratories that could have added to his wealth.
Yet, estimating Kwon’s net worth is challenging, given that cryptocurrency assets are notoriously difficult to track and assess precisely. The projected range of $135 to $150 million is a rough estimate of his current net worth.
Due to the absence of an extradition agreement between Serbia and South Korea, Kwon might conceivably hide there without risk of arrest. But keep in mind that these are merely presumptions and that there is no definitive evidence to back them up.
How Did Kwon Make His Fortune?
The Terra blockchain technology was developed by Terraform Labs, which Do Kwon helped co-found in 2018.
Terra is working on providing a decentralised framework for digital payments and stablecoins pegged to the value of significant fiat currencies like the Korean won and the
US dollar, among others. Stablecoins like Terra allow efficient payments, remittances, and other financial transactions.
Kwon acquired a large sum of money thanks to Terra’s success in offering a secure and dependable platform for digital payments and in its stablecoin initiatives, including UST, Luna, and Anchor.
In addition to Terra, Kwon has worked on several other cryptocurrencies, such as Space Mesh, a proof-of-stake blockchain that aims to offer a scalable and secure platform for decentralised applications, and Chai, a payment service that lets users pay with cryptocurrencies at participating merchants. His involvement in numerous ventures and experience in the bitcoin sector may also increase his net worth.
Will Kwon Find Himself Venturing into Cryptocurrency Soon?
Some may be asking whether the two podcasts Kwon has appeared on — Laura Shin’s and UpOnly — have been his only public appearances since Terra’s collapse in 2022.
On both visits, Kwon mentioned that he had already started working on various new projects and employing engineers and developers.
But given that other governments, including South Korea and the United States, want Kwon, it is difficult to predict whether he will ever return.
What Caused the Collapse of Terraform Labs
A significant moment in the cryptocurrency market was the demise of Terraform Labs, the company behind the stablecoin TerraUSD (UST) and the digital currency Luna.
The UST, previously tied to the US dollar, abruptly broke free in May 2022, leading to a sharp decline in value. This, in turn, led to a decrease in the price of Luna, which led to a loss in the market value of about $45 billion in less than a week.
Several investors were blamed for selling more than $285 million worth of UST, which led to a chain reaction of panic selling and was ultimately the cause of the collapse. This catastrophe caused hundreds of billions of dollars in losses for the whole crypto market.
The Luna Foundation Guard responded by providing a $1.5 billion loan to the market to restore order. Unfortunately, the damage was out of control, and much money, ranging from billions, was lost across the crypto field.
The downfall of Terra served as a stark reminder of the risks involved in cryptocurrency trading and the necessity of using extreme caution and doing extensive research whenever working with digital assets.
Following the incident, several investors and stakeholders in the cryptocurrency sector demanded more regulation and control, highlighting how important accountability and transparency are. They want to make sure that such incidents don’t happen again.
Do Kwon contribute to the founding of Terra LUNA, a decentralised digital payment system for stablecoins and digital payments that failed in 2022? Based on his current projected Bitcoin holdings in the Luna Foundation Guard wallet, his estimated net worth for 2023 is between $135 and $150 million.
Kwon might be seeking a comeback in the cryptocurrency market despite the risks, despite suffering legal ramifications from numerous jurisdictions. Whether Do Kwon will make a spectacular comeback is still uncertain.