Terra’s inventor, Do Kwon, is still a hot topic of discussion in the cryptocurrency space after the collapse of Terra (LUNA) and UST. Now, a new rumor has surfaced with allegations that the Terra founder is planning to create a new stablecoin on Terra 2.0. Here are the details…
New claim for LUNA inventor
The new network on Terra (LUNA) went live after a vote, but TerraUSD (UST) was not included in the plan. Then on May 27, Terra 2.0 was released after Do Kwon and the Terraform team worked to resolve the collapse of the LUNA and UST. After the launch, users were airdropped. News of Do Kwon’s current plans was smashed by a tweet by “FatMan,” a popular account claiming to have access to insider information. The allegations have not yet been confirmed or denied by Terra or Do Kwon.
If fully/overly collateralized, sure, why not?
— Crypt-oh (@Cryptoh8) May 30, 2022
A stablecoin associated with Do Kwon is While not the best news in the community at the moment, there are those who think decentralization is an important step towards uncensored money. In that case, Do Kwon’s decentralized stablecoin on Terra 2.0 could be welcomed. On the other hand, the collapse of the IHR could be an obstacle to such plans because many people are still skeptical about Terra’s sustainability. When UST and LUNA collapsed, many people lost their savings. A new stablecoin created by Terra may not inspire much confidence in the community.
Terraform Labs took the LUNA badly, developed the Luna 2.0 and people are still in a rush to buy it.
What will happen to UST if a new stablecoin is released?
While critics of Do Kwon didn’t like the new idea per se, they noted that they might consider supporting it if TFL wanted to create a fully collateralized stablecoin in Terra 2.0. B Terra 2.0 has received support from various circles in the crypto market, particularly the much-needed listing of the new LUNA token on exchanges. As Kriptokoin.com also reported a few days ago, trading platforms were also instrumental in supporting the Luna airdrop. However, it is unclear whether they will list a new Terra stablecoin. The allegations also left the community with questions about what would happen to UST if another stablecoin were created.
