Home
News
- Everyone in the crypto sphere is now very well aware that the Terra (LUNA) collapse happened recently.
- In a Piper Sandler’s Global Exchange and Brokerage Conference presentation, Sam Bankman Fried shared what he thought about LUNA.
- Sam Bankman Fried is the founder of crypto exchange FTX, and is considered as one of the youngest billionaires.
Something Was Brewing, SBF Knew
The wreaking havoc in the crypto sphere came when the prominent ecosystem Terra failed to stand its ground in digital asset space. TerraUST, the stablecoin was supposed to stay intact at $1, but it didn’t, as it got unpegged from USD and got bumped, taking the cryptocurrency market with it.
The FTX founder and young billionaire, Sam Bankman Fried anticipated the plunge in the stablecoin, but didn’t expect the wounds to be so harsh, it would give a rise to a crypto bloodbath.
In the Piper Sandler’s Global Exchange and Brokerage Conference event, FTX CEO said he wasn’t so sure of the magnitude of this plunge, shocking even for him.
Sam Bankman Fried stated that he had a feeling that there was something wrong with Terra, but he did not have the idea that it would collapse so badly.
A Stablecoin Is Supposed To Stay Stable
What’s the purpose of a stablecoin? To remain stable right? Sam Bankman Fried feels the same. He stated that a stablecoin is designed to remain stable.
SBF further stated that the best instance should be a bank account having dollars and tokens in equal quantity. The other defining attribute of a stablecoin being transparency, he added that folks must be aware of what they are acquiring.
Sam Bankman Fried also stated that what it precisely shouldn’t be is something with a flexible crypto asset backing it.
He elaborated further that users can get their hands over $1 worth of Terra (LUNA), which eventually would enable a person to mint 1 TerraUSD.
He also said that, what was precisely supporting the 20 Billion UST circulating in the market to bear the plethora of minting of LUNA and pay up for them, which is a volatile stuff.
As of this writing, the latest token of the ecosystem, LUNA 2.0, was trading at a market price of $3.07, bullish by 1.29% during the past 24 hours.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
