Is Do Kwon Planning To Create A New Stablecoin On Terra 2.0?
Terra’s Do Kwon is still a major subject of discussion within crypto circles after the collapse of Terra LUNA and UST. Now, a new rumor has sprouted up with claims that the beleaguered Terra founder is planning to create a new stablecoin on Terra 2.0.
The Voting For Terra (LUNA) New Blockchain went live, but TerraUSD (UST) was not included in the plan. Then Terra 2.0 was launched on May 27 after Do Kwon and his Terraform team worked to solve the collapse of LUNA and UST. An airdrop was conducted to users after the launch.
News of Do Kwon’s current plans was broken in a tweet by a popular whistle blower ‘FatMan’ with access to insider information. The claims are yet to be confirmed or refuted by Terra or Do Kwon.
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
Popular Twitter influencer also brought the topic to light:
Apparently $luna is working on a new decentralised stablecoin… FFS man!
— Lark Davis (@TheCryptoLark) May 31, 2022
While a stablecoin associated with Do Kwon isn’t the best news in the community right now, there are those who feel that decentralization is an important step towards censorship-free money. In this case, Do Kwon’s decentralized stablecoin on Terra 2.0 may be welcome.
Good. We need projects to iterate on censorship free money. If nobody else is going to do it then I’m glad TFL is.
— RyanLion 🌒 (@TheRyanLion) May 30, 2022
On the other hand, the collapse of UST could be an impediment to such plans because a lot of people are still skeptical of Terra’s viability. Many people lost their savings when UST and LUNA crashed. A new stablecoin created by Terra may not inspire much confidence in the community.
Tajo crypto says:
“Terraform Labs handled Luna classic poorly and developed Luna 2.0 and people are still rushing to buy it. So, Do Kwon is coming with UST 2.0 so that people will continue buying. Lots of people in the crypto space don’t care what happened before, they just want to make money.”
While Do Kwon’s critics don’t like the new idea per se, they would consider supporting it if TFL wanted to create a fully collateralized stable coin on Terra 2.0. Such a stable coin would be protected from such price crashes as recently seen with UST.
If fully/overly collateralized, sure, why not?
— Crypt-oh🔺 (@Cryptoh8) May 30, 2022
Terra 2.0 has received support from various quarters in the crypto market, especially the much-needed listing of the new LUNA token on exchanges. A few days ago, the trading platforms have also been instrumental in supporting the Luna airdrop.
However, it’s not clear whether they would list a new Terra stable coin. Also, the claims have left the community with questions about what will happen to UST if another stablecoin is created. Was UST not part of Terra’s revival plan? The community is now anxious to hear from Do Kwon and TFL to clear the air about the stablecoin claims.