NewsletterTerra’s Do Kwon Building New Stablecoin, Says Insider
Terra founder Do Kwon could launch a new decentralized stablecoin on Terra 2.0, a self-proclaimed insider said on Tuesday.
The claim was made by an active participant on the Terra governance forums, who goes by the moniker FatMan. They said that a “verified insider” told them that Kwon is currently designing a new decentralized stablecoin to be built on Terra 2.0.
The move would contradict the initial plan for Terra 2.0, which was to discard the TerraUSD stablecoin (UST). UST’s depegging was largely what caused the Terra crash, after the reserves accumulated by Kwon proved insufficient to support the stablecoin.
Will the crypto community accept a new Terra stablecoin?
While most reactions to FatMan’s post on Twitter were negative, some users opined that the token may work if it is fully collateralized.
Collateralized stablecoins such as USDT and USDC have so far proven to be the most stable among their peers, having weathered several market crashes since their inception in the last decade.
Other users also said that stablecoins are necessary as “censorship free money,” and that they did not mind that Terra was building one again.
Still, overall sentiment towards the move remained skeptical. Many users cited the UST crash as a major deterrent towards 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.
-Twitter user @PersianCapital
Stablecoins smacked by UST crash
UST’s crash in early-May sent ripples across other stablecoins, with USDT briefly depegging after the crash. Several other algorithmic stablecoins like UST had depegged sharply after the crash amid heightened selling pressure.
The UST crash also invited harsh criticism against stablecoins, from regulators and investors alike.
Still, it appears that investor interest in Terra has persisted despite the crash. Both LUNA and Luna Classic (LUNC) rallied sharply in the past few days.
LUNC in particular is up over 50% in the past 24 hours. The token has been extremely volatile since its airdrop last week.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Just-in: White House Reviews IRS Proposal To Tax US Citizen’s Outbound Crypto Holdings
- Grayscale’s Dogecoin ETF Could Launch on November 24, Says Bloomberg Analyst
- Gold Tops Bitcoin as BTC Extends Decline, Losing Its YTD Gains
- Charles Hoskinson Reveals Midnight Roadmap, NIGHT Token To Go Live Dec 8
- Bybit’s Blockchain for Good Alliance Ends Impact Forum 2025 with SDG-Focused Initiatives
- Will MOODENG Reach $0.1 and MEW Hit $0.002 After Robinhood Listing?
- What’s Next for Cardano Price After Breaking Below Key Support Level?
- Pi Coin Price Could Jump 30%, But There’s a Catch
- Expert Sees XRP Price Rally if it Holds Key Support Ahead of Ripple ETF Launch
- Chainlink Price Eyes Breakout as Whales Scoop 150K $LINK
- Top Analysts Predict How Low Bitcoin Price Might Fall?
