Do Kwon and Nguyen Thanh Trung's Crisis Handling

 Because Terra's Kwon and Axie Infinity's Nguyen Thanh Trung both had problems that caused volatility in the cryptocurrency market, but had different solutions.



and Thanh Trung have much in common. Both are founders of billion-dollar blockchain projects, building products in 2018 during the darkest market period. By 2021, at the age of 30, both Kwon and Trung are in the top 10 crypto influencers, according to CoinDesk. In 2022, both projects encountered problems with the most serious impact ever.

The hack into the Ronin network of Axie Infinity took place at the end of March, when lax management of validator nodes caused more than $600 million in cryptocurrencies to be stolen, impacting the GameFi industry and causing the project's token price to drop by thousands. ten percent. A month later, two digital currencies, Luna and UST developed by Kwon, also became a disaster, contributing to the drop in value of the entire market by hundreds of billions of dollars, causing many investors to lose everything.

Binance currently holds a large trading volume of the aforementioned tokens. In a post on May 13, CZ criticized Terra, and implied that this project needs to learn Axie Infinity in how to handle it. "I'm disappointed in how Terra's UST/Luna was handled (or not handled at all)," CZ wrote. "So far, we haven't received any positive feedback. This is the complete opposite of Axie Infinity. The team has done its part, put in place a plan, and actively contacted us." .

CZ acknowledged the tweet "broke the rule of neutrality and did not comment on the project", but it was something he needed to do to protect users and industry colleagues.

Do Kwon (left) and Nguyen Thanh Trung. Photo: Bloomberg, VnExpress
Do Kwon (left) and Nguyen Thanh Trung. Photo: Bloomberg, VnExpress

Binance has joined a number of large funds such as Animoca Brands, Dialectic, Paradigm, a16z and Accel to raise more than 150 million USD to support Axie Infinity in recovery. In addition, they also become the main platform for Axie Infinity players to deposit and withdraw while the network is upgrading.

In contrast, with Do Kwon, the boss of Binance has not once expressed agreement with this founder since the incident happened. He repeatedly criticized the team for not being transparent in information with users and needing to be accountable to investors.

Not only CZ, some crypto founders like Vitalik Buterin (Ethereum) and Billy Markus (Dogecoin) also opposed Do Kwon and the idea of ​​​​reviving Luna. Below Kwon's tweet saying he was "heartbroken by the impact the project has on users", Markus advised Kwon to "leave the crypto space forever", but the Terra founder blocked his account.

Former Kwon supporters, like billionaire Michael Novogratz, were also silent for days after the incident. He used to tattoo his arm with a wolf, moon with the word Luna to support this digital currency. On May 20, he said: "With hindsight, everything is clear in front of my eyes. The Luna tattoo will be a constant reminder to me that venture capital requires slowness."

Contrasting in handling

On the way to becoming a billion-dollar project, both Nguyen Thanh Trung and Do Kwon many times encountered mixed opinions. While Axie Infinity was questioned about how to generate money to pay players, Terra was also questioned about the sustainability of the UST coin and the 20% interest rate of the Anchor platform.

Nguyen Thanh Trung almost did not respond to questions. Kwon, on the other hand, uses his Twitter account as a means of criticizing opponents. He used to use words like "poor people" and "cockroaches" to fight them on social media.

Phan Duc Nhat, a blockchain expert in Vietnam, said that Do Kwon's statements in the past and the way he handled them in the present made him turn away. "Since the incident happened, Kwon has not officially apologized to investors and users. He also did not offer a plan to compensate the victims. This is in contrast to Trung when he acknowledged the damages. project flaws and promised full compensation for the stolen money," he said.

Kwon also had inconsistent statements, causing many people to gradually lose faith. For example, when the new incident happened, on May 11, Kwon said he would use all means to save the UST, including sacrificing Luna. However, in the plan to build Terra 2.0 just a few days later, he did not mention UST, but focused on creating a new Luna 2.0 token.

On May 21, this founder publicly released the address of the wallet "burning" Luna, causing many holders of this token to accept to burn their Luna number, hoping for the token to increase in price. But on May 22, Kwon said the burning was useless.

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