- A revived Terra stablecoin could be on the horizon
- A prominent Terra tweeter claimed that a “verified insider” had confirmed that a new stablecoin was in the works
- Do Kwon stated that an algorithmic stablecoin would not be part of the new Terra
After promising that an algorithmic stablecoin would not be part of any new Terra platform, founder Do Kwon might be about to delve back into the shark infested waters of stablecoins once again. The story, promoted by prominent Terra tweeter @FatManTerra, cites a “verified insider” as confirming that Kwon, who is himself the subject of a class action lawsuit and potential criminal legal action, is planning a decentralised stablecoin, much to the surprise (and disdain) of the community.
Kwon’s Terra Stablecoin Dream Lives On
When Kwon put forward the second LUNA rescue plan on May 16, it was made very clear that the new chain would be created “without the algorithmic stablecoin.” However, it seems that, even after the collapse of Terra UST earlier this month, Kwon may not be finished with his stablecoin dream:
JUST IN: Do Kwon’s Terraform Labs is reportedly working on a new decentralized stablecoin built on Terra 2.0
— Watcher.Guru (@WatcherGuru) May 31, 2022
Given that Kwon promised no algorithmic stalecoin, he may instead start looking for investors to fund a fully backed Terra USD coin, although at this point it would be amazing if anyone but a penny of trust in him and his projects.
LUNA Token Endures Early Volatility
As expected, the response from the Twitter community was caustic:
Why wouldn’t he, based on his engagement there’s still plenty of idiots to take money from. https://t.co/4Ybi1ZUkVp
— Mayne (@Tradermayne) May 31, 2022
This should read: buy this stable coin if you want to lose all your money https://t.co/U91KomJEYw
— CryptoGodJohn (@CryptoGodJohn) May 31, 2022
The new LUNA token, which is airdropped to certain demographics and is available from the likes of Kraken, Huobi, and OKX, has endured a volatile start to life, opening at $18 before crashing to $4.40 within hours. It has since stabilised at around $8.50, and it is clear that the performance of the token will, to a large extent, reflect the faith that the community still has in Kwon, or lack of it.