Stablecoin TerraUSD (UST) and the ecosystem it promotes ended with the collapse of Terra Luna. Su Zhu, co-founder of Three Arrows Capital, one of the altcoin investors, shares that he ignored all the alarms and also suffered huge losses.
Su Zhu weighs in on Luna and UST collapse
On Friday, the Terra ecosystem stablecoin UST lost price stability. Constant LUNA pressure to regain it was not effective, but rather fueled Terra’s downfall. Investors lost $106 million on Terra LUNA as the price dropped below $7. 58% of the investors thought that these levels were the bottom and took an upward position. One of the early investors was Su Zhu, co-founder of Three Arrows Capital. As Collapse Terra’s founder Do Kwon comes to the point of threats, there is an explosion of anger on social media. Su Zhu, on the other hand, broke his silence on the collapse of TerraUSD (UST) and Luna, an ecosystem it supports. He shared that he lost big money too:
Some people ask me why I still have LUNA on my profile. I was an investor, I believed in the community and shared a common purpose. There was talk of the attacks and the subsequent dollar imbalance; The fast-growing ecosystem had to do more to move slowly+safely.
This has been an incredibly humbling week and its difficult to find the right words
Was discussing w @hasufl a bunch last night on whether to record an episode on algo stablecoins, and i think will likely do it to give some more longform thoughts
— Zhu Su 🔺 (@zhusu) May 13, 2022
Zhu acknowledges that something went wrong. He says critics have already highlighted potential risks and need to move more slowly in hopes of making the ecosystem safer. He also adds that criticism of projects that get caught up in the FUD should not be dismissed. Instead, it should be encouraged, and such criticism should be met with caution rather than dismissal, according to Zhu.
Su Zhu apologized to his critics, admitting he needed to be more careful with altcoins
Zhu earlier this month encouraged his Twitter followers to use their Bitcoins as collateral for their loans. called. He suggested investing 18-20% of the proceeds in UST and Anchor Protocol stocks instead, she said. This advice would cost anyone who didn’t sell their shares for a substantial amount and would make it impossible to repay the debt. This tweet was later removed by Zhu. Three Arrow Capital and Jump Capital, known as
Kriptokoin.com , have earmarked $1 billion to support UST in the past months. The LUNA is now down 99.9% at $119.18 ATH.
