Bitcoin Foundation Chairman and Tether co-founder Brock Pierce oturdu aşağı Bloomberg, weighing in on the demise of TerraUSD as well as the market crash.
Users of the coin have reportedly lost millions of dollars in the collapse, after Terra’s algorithmically engineered stablecoin lost its 1-to-1 peg with the U.S. Dollar, causing a hemorrhaging effect where both yeryüzü and Luna’s price plummeted.
Pierce says that while this experiment got “too big, too fast,” it hasn’t negatively impacted the rest of the ecosystem, noting that “the problem with this experiment is that people put too much trust in it too soon.”
Do Kwon recently amended his proposal to revive the Terra blockchain, suggesting the creation of Luna (LUNA) 2.0 tokens on an entirely new blockchain. However, many of come to question the legitimacy of his proposal, as his amendment to it comes in the middle of an on-chain vote.
Yönetim yorumladı o sırada Terra LUNA ve UST experiment got ‘too big, too fast,’ it hasn’t negatively impacted the rest of the ecosystem. However, he also said, “the problem with this experiment is that people put too much trust in it too soon.”
Are stablecoins as risky as Yellen says?
Last week, U.S. Treasury Secretary Janet Yellen warned about the risk of a “bank run” where investors flee stablecoins, which could potentially cause a contagion of other markets. Valued at $160 billion, stablecoins have grown so much that many believe there is a form of systemic risk.
Pierce, one of Tether’s co-founders, told CNBC that “Tether breaking its peg is an overstatement,” referencing the many deviations in price Tether has previously experienced. Speaking to market uncertainty, Tether recently announced in its latest üç aylık güvence raporu that its stablecoin reserves are “fully backed”.”
“The Group’s consolidated reserves held for its digital assets issued exceeds the amount required to redeem the digital asset tokens issued,” the report stated. Following Terra’s crash, several other stablecoins also lost their dollar peg amidst the turbulent market, including Tether.
“Well, that was a flash sort of crash that happened for all of a moment. It certainly wasn’t sustained. Yes, that’s not a positive occurrence. But it immediately recovered,” Pierce noted. Yet, Pierce’s trust in algorithmic stablecoins hasn’t been shaken, as he says he believes “there is a place for them in the future.”
Indeed, the ripple effect of the volatile market has renewed calls for immediate regulation of virtual assets.
Fabio Panetta, a member of the executive board of the European Central Bank, son zamanlarda dikkat çekti that “stablecoins are vulnerable to runs,” highlighting that there is ‘no guarantee that stablecoins can be redeemed at par at any time.”
Source: https://beincrypto.com/brock-pierce-weighs-in-on-terra-stablecoin-crash/