Do Kwon in Hot Water After Rumors of New StableCoin Surface
2022.05.31 14:01
Do Kwon in Hot Water After Rumors of New StableCoin Surface
- Do Kwon is rumored to be designing another stablecoin on Terra 2.0.
- Twitter (NYSE:TWTR) account “FatMan” claims trusted sources informed them of this development.
- The Terra community is not happy with this news.
Do Kwon, the founder of the Terra ecosystem, seems to be back in the middle of another controversy. Apparently, despite the massive failure and collapse of TerraUSD (UST), the South Korean entrepreneur is working on yet another stablecoin.
Earlier last month, the entire crypto world suffered the effects of an unprecedented market collapse. Among these, the Terra ecosystem could easily be the biggest casualty. So much so that Terra and its stablecoin TerraUSD have become a cautionary tale.
However, to salvage any remaining hope and mitigate damages, Do Kwon proposed a hard fork. The Terra team had stated that the new chain Terra 2.0 would bear no resemblance to the old chain which they called Terra Classic. The infamous algorithmic stablecoin would not be a part of the new chain.
Yet, now, there are reports from various Twitter accounts claiming that Do Kwon is currently working on design plans for a new decentralized stablecoin that would be built on Terra 2.0. An account that goes by the name “FatMan” took to Twitter to spill the beans and express his displeasure with the development.
A verified insider close to TFL has confirmed that Do Kwon is currently working on design plans for a new decentralized stablecoin that will be built atop Terra 2. Fool me once…
— FatMan (@FatManTerra) May 30, 2022
As expected, much of the community is fuming at this reveal. “Please no, we just started recovering from the last dip,” said one user. “New unstable coin is approaching,” said another. Nevertheless, some were quick to call it baseless rumors.
On the other hand, there are members of the community who weren’t surprised even during the initial crash. Joe Downie, chief marketing officer at cryptocurrency platform NiceHash, was quoted saying, “TerraUSD was never really a stablecoin from the start.”
At any rate, members of the community are being cautious. If history is any guide, the new stablecoin may just come crashing like its predecessor.
Continue reading on CoinQuora
