Bitcoin pioneer Charlie Shrem was at the Cannes Film Festival this week to launch crypto film-financing project Defiine—and he had some choice words regarding the collapse of Terra’s UST stablecoin.

“I think a lot of people predicted what would happen with Terra and LUNA,” he told Decrypt. “But at the end of the day, because we were in a bull market, it’s like an example of our industry.”

He drew a distinction between asset-backed stablecoins such as USDC and Tether—the latter of which has remained famously opaque regarding its reserves—and algorithmic stablecoins such as UST.

Algorithmic stablecoins, he said, have “been tried so many times over the last 10 years; even in 2014, people were trying to theorize different ideas.” He added that, “Tether launched for a reason, but they realized you can’t create a stablecoin backed by the same type of speculative asset, so when one starts going down, people are going to be selling one for the other.”

Crypto film financing

Shrem’s latest project, Defiine, is itself based around stablecoins. Billed as a digital finance solution for independent films, it leverages “assets and IP against crypto liquidity pools.”

“We’ve figured out a way to create potentially a stablecoin that’s backed by a basket of NFTs,” Shrem said. “The NFT is a lien against a tax credit or in-film minimum guarantee, or negative pickup, or Netflix saying, ‘We’ll give you $3 million when you finish the movie, and over three years.’ Currently, there are banks that do this, but they charge 15% and higher.”…

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