New Stablecoin On Do Kwon’s Terra 2.0, Claims Insider! What Is Do Kwon Upto ?
According to a self-proclaimed insider, Terra creator Do Kwon may introduce a new decentralized stablecoin on Terra 2.0.
FatMan, a regular contributor to the Terra governance forums, made the allegation. Kwon is now building a new decentralized stablecoin to be built on Terra 2.0, according to a “confirmed insider.”
The move would go against Terra 2.0‘s original objective, which was to get rid of the TerraUSD stablecoin (UST). The depegging of UST was a major factor in the Terra crash, as Kwon’s reserves were inadequate to maintain the stablecoin.
New Stablecoin On Terra 2.0
The majority of responses to FatMan’s Twitter post were unfavorable. However, several individuals suggested that the token may work if completely backed.
Since their creation, the asset backed stablecoins, USDT and USDC have shown to be the most stable among their competitors.
Other people agreed that stablecoins are “censorship-free money,” and that Terra’s decision to construct one again was OK with them.
Yet, the public’s reaction to the move was suspicion. The UST collapse was mentioned by many people as a key barrier to anything new from Terra.
Even if it’s supposedly fully collateralized, I think many are turned off by anything that Do Kwon touches. I for sure am.— PersianCapital (@PersianCapital) May 30, 2022
UST Crash Affects Other Stablecoins
The UST crash in early May has consequences for other stablecoins, with USDT depegging momentarily. Following the crisis, several other algorithmic stablecoins, such as UST, depegged significantly due to increased selling pressure.
Also the Lawmakers and investors have condemned stablecoins in the aftermath of the UST meltdown.
Despite the crisis, it looks like investor’s interest in Terra has not faded. Neither LUNA and Luna Classic (LUNC) have made significant gains in recent days.
LUNC, has risen by more than 50% in the last 24 hours. Ever since airdrop last week, the token has been exceedingly volatile.Source