Ethereum ETH/USD co-creator Vitalik Buterin weighed in on the disaster that saw Terra LUNA/USD and its algorithmic stablecoin TerraUSD UST/USD collapse last week.
What Happened: In a tweet on Saturday, Ethereum educator Anthony Sassano suggested the cryptocurrency industry should “stop experimenting” with Ponzis, algorithmic stablecoins, yield farming, and other “unsustainable nonsense," and focus on blockchain applications in other areas like decentralized identity and public goods funding.
His post drew support from Buterin, who said he agreed "hard on this."
In Buterin’s view, the term “algostable” is being used as a propaganda term that puts uncollateralized stablecoins in the same bucket as collateralized ones like DAI DAI/USD.
DAI is an Ethereum-based stablecoin managed by the Maker Protocol MKR/USD and its decentralized autonomous organization.
“We need to really emphasize that the two are very different,” said Buterin, who had been vocal about his concerns regarding uncollateralized stablecoins weeks before the UST scenario unfolded.
Earlier this year, Terra’s founder Do Kwon told his Twitter followers that UST’s success would be the end of DAI.
The Terra founder is currently working on a “revival plan” for UST and LUNA holders, as per his most recent update.
Price Action: According to data from Benzinga Pro, LUNA was trading at $0.000261 at press time.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
