Ethereum (CRYPTO: ETH) co-creator Vitalik Buterin weighed in on the disaster that saw Terra (CRYPTO: LUNA) and its algorithmic stablecoin TerraUSD (CRYPTO: UST) collapse last week.
What Happened: In a tweet on Saturday, Ethereum educator Anthony Sassano suggested the cryptocurrency industry should “stop experimenting” with Ponzis, algorithmic stablecoins, yield farming, and other “unsustainable nonsense," and focus on blockchain applications in other areas like decentralized identity and public goods funding.
His post drew support from Buterin, who said he agreed "hard on this."
Agree hard on this, with the one quibble that "algostable" has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables like DAI/RAI, and we need to really emphasize that the two are very different.— vitalik.eth (@VitalikButerin) May 14, 2022
DAI is an Ethereum-based stablecoin managed by the Maker Protocol (CRYPTO: MKR) and its decentralized autonomous organization.
“We need to really emphasize that the two are very different,” said Buterin, who had been vocal about his concerns regarding uncollateralized stablecoins weeks before the UST scenario unfolded.
Earlier this year, Terra’s founder Do Kwon told his Twitter (NYSE:TWTR) followers that UST’s success would be the end of DAI.
By my hand $DAI will die.— Do Kwon (@stablekwon) March 23, 2022
Price Action: According to data from Benzinga Pro, LUNA was trading at $0.000261 at press time.
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