--- title: "Creator of “Stablecoin” That Crashed to Zero Says It’s Creating a New One" description: "Terra Firma? The dust hasn't even settled from the Terra stablecoin's meteoric crash, but the people behind it are already trying to make a new currency. Yesterday, the official Terra account tweeted that \"Terra 2.0 is coming\" after a majority of investors voted to create a new blockchain that, quite confusingly, will use the exact […]" date: "2022-05-26" modified: "2022-05-26" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/terra-stablecoin-return" categories: - "Blockchain" - "Future Society" tags: - "crypto" - "terra" - "the blockchain" - "the digest" --- # Creator of “Stablecoin” That Crashed to Zero Says It’s Creating a New One ![The dust hasn't even settled from the Terra stablecoin, but the people behind it are already trying to make a new currency.]() *\Image: Futurism\* ## Terra Squirma The dust hasn't even settled from the Terra stablecoin's meteoric crash, but the people behind it are already trying to make a new currency. Well, sort of. Yesterday, the [official Terra account tweeted]() that "Terra 2.0 is coming" after [a majority of investors voted]() to create a new blockchain that, confusingly, will use the exact same name. News of this new blockchain comes just over a week after the Terra stablecoin and its sister coin, Luna, [plummeted in value to almost nothing]() due to a crisis of investor confidence. Sure, the crash tailed a huge [downturn in the traditional stock market](). But the whole idea behind Terra was that it would *always* be pegged to the same value of the US dollar, so when that vision failed in spectacular style, it reverberated throughout the crypto industry, causing Bitcoin and other digital currencies to crash as well. So, uh, let's see how this next one goes, huh? ## Failing Up While Terra and its founder, Do Kwon, talk a big game about regaining investor confidence — Kwon framed this rehashing as "a chance to rise up anew from the ashes" — there's a lot of history that makes this scheme seem like, well, a scam. Kwon, [as *CoinDesk* revealed last week](), was allegedly the founder of another failed stablecoin, called Basis Cash, that in early 2021 got wrecked in a similar manner to Terra when its USD-backed value *also* dropped below one dollar. Now, he's [under scrutiny from South Korean criminal and financial investigators]() following Terra's huge crash. Though Kwon maintains that neither he nor his company, Terraform Labs, have benefitted financially from the Terra crater, he did joke that he finds "entertainment in watching companies die" and, just before the crash, cryptically tweeted "[I love chaos]()." Terra investors may be trying to recoup their losses, but given the history surrounding the coin's founder, they may be better off cutting and running. **READ MORE:** [Terra to Create New Blockchain After Historic Luna Crypto Collapse]() \[*CNET*\] **More on Do Kwon:** [*Bankrupt Investor Arrested for Showing Up At Crypto Founder's House*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()