According to a self-proclaimed insider, Terra creator Do Kwon may introduce a new decentralized stablecoin on Terra 2.0.
FatMan, a regular contributor to Terra governance forums, made this allegation. Kwon is building a new decentralized stablecoin that will be built on Terra 2.0, according to a “confirmed insider”.
The move would go against Terra 2.0‘s original objective, which was to get rid of the TerraUSD stablecoin (UST). The depegging of UST was a major factor in the Terra crash, as Kwon’s reserves were inadequate to maintain the stablecoin.
New Stablecoin on Terra 2.0
The majority of responses to FatMan’s Twitter post were unfavorable. However, several people have suggested that the token might work if fully backed up.
Since their creation, the asset backed stablecoins, USDT and USDC have shown to be the most stable among their competitors.
Other people agreed that stablecoins are “uncensored money” and that Terra’s decision to build one again suited them.
Yet, the public’s reaction to the move was suspicion. The UST collapse was mentioned by many people as a key barrier to anything new from Terra.
UST crash affects other stablecoins
The crash in UST in early May is having an impact on other stablecoins, with USDT temporarily breaking loose. Following the crisis, several other algorithmic stablecoins, such as UST, pulled out significantly due to increased selling pressure.
Also the Lawmakers and investors have condemned stablecoins in the aftermath of the UST meltdown.
Despite the crisis, it seems that investor interest in Terra has not faded. Neither LUNA nor Luna Classic (LUNC) have made significant gains in recent days.
LUNC, has risen by more than 50% in the last 24 hours. Ever since airdrop last week, the token has been exceedingly volatile.
