Illustration by Mitchell Preffer for Decrypt

It was the market’s sixth consecutive weekly decline, but on Crypto Twitter, the industry’s eyes were pinned on UST’s historic depegging. 

Terra’s dollar-pegged algorithmic stablecoin collapsed, bottoming out at $.13 on Friday, causing a domino effect where the price of LUNA nosedived to virtually zero as people rushed to exit UST by redeeming it for LUNA, which is currently worth a fraction of a cent as UST trades at $.17. 

There are many questions, grievances, proposals, and conspiracy theories as to what exactly happened, but let’s first rewind and recall Terra CEO Do Kwon’s immense hubris.

Last week, he literally said this would never happen.

In March, he threatened to personally crush his rivals in the algorithmic stablecoin market.

But this week, Kwon’s pride, like his projects, came crashing down. Guess the Earth became a bit unstable?

UST began seriously depegging on Monday when it hit an intraday low of 79 cents. Do Kwon reassured followers he was doing everything he could to throw money at the situation.

He also tweeted vague murmurs of a “recovery plan.”

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