How do crypto KOLs view the UST crash

As Bitcoin and other cryptocurrencies plummeted, crypto KOLs were on the defensive yesterday. And Terra’s Stablecoin UST fell off a cliff, completely putting the social media platform into a state of ultra-high speed operation.

UST, which was designed to peg the dollar, fell from a worrying $0.985 to a shocking $0.9, then $0.85, $0.8 and even lower. Crypto Twitter’s resident experts, stakeholders, naysayers, and crocodiles were all focused on the historic catastrophe in real time as the once-stable currency fell below $0.70 entirely from the U.S. dollar.

Questions arose as UST began and continued to plummet: How could a Stablecoin become so… volatile? Why not stop? Why is this happening with UST and not other Stablecoins pegged to USD? Aztec’s Jonathan Wu has released a speed-run course to clarify the story, analyzing the breakaway in real time.

As with all the misery on Twitter, there are joys and sorrows in the face of the UST debacle. Some, like Messari Crypto founder Ryan Selkis, warned that the impact of the day’s events could go far beyond the success or failure of Terra itself.

How do crypto KOLs view the UST crash

“Even if Terra fails, it’s half the size of Enron. We’re on the brink of a regulatory abyss, and maybe we can take a moment to gloat.”

Tezos founder Arthur Breitman predicts that, in addition to bad financial consequences, there will be a shift in public perception of all crypto practitioners.

How do crypto KOLs view the UST crash

“I would also say that people will take notice and think encryption is not good enough. Even if the majority of the industry praises UST for being innovative, it won’t help.”

Crypto citizens on Twitter are glued to their screens as UST sinks lower and lower, creating an unheard of reality every hour. As crypto journalist Laura Shin observes, the end of the world at 5pm turns into a long-awaited miracle at 6pm.

How do crypto KOLs view the UST crash

“It’s funny that UST is now $0.79 and I feel so relieved, and 35 minutes ago, when it was $0.75, I freaked out.”

However, industry leaders claim to be unaffected by these panics. The founder of FTX, Sam Bankman-Fried, believes that the collapse of Stablecoin has been going on for a long time .

How do crypto KOLs view the UST crash

“If you know the details, you’ll know it all works out.”

And Mark Cuban argues that this seemingly unprecedented moment in crypto history actually mirrors the growing pains of Web 2 in the early 2000s . Avalanche co-founder Emin Gn Sirer even believes that the current event has a precedent in the history of crypto and Stablecoin .

Still, that background didn’t dissuade many of the doubts that Terra co-founder Do Kwon dealt with the UST disintegration extremely publicly and in real time. When Kwon live-tweeted Terra’s (and ultimately unsuccessful) efforts to back Terra’s Luna Foundation Guard loaning billions of dollars to prop up Stablecoin, some couldn’t help but point out  the absurdity of UST as an “algorithmic stablecoin” exposed by the strategy place .

How do crypto KOLs view the UST crash

Also, some people decided to use the moment for some sweet revenge. Cardano founder Charles Hoskinson cites an old tweet from Do Kwon in which Do Kwon hastily commented on why he should buy Cardano’s native token ADA: because it is negatively correlated with Terra’s own token LUNA (implying that  the fall in ADA is LUNA a natural by-product of rising ). With UST and LUNA down, Hoskinson fired back at Do Kwon.

How do crypto KOLs view the UST crash

As of the publication of this article, UST has fallen below $0.6 and has been seriously de-anchored.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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