Quick take:
- Terra’s founder, Do Kwon, believes that the more blockchains issue their own stablecoins, the more likely UST will win
- Do Kwon was commenting on the impact of Tron issuing its USDD stablecoin
- According to the Terra founder, algorithmic stablecoins are fast becoming the norm, and the future looks bright for them
- The Luna Foundation Bitcoin reserves are now at 42,530 BTC, worth $1.69 billion
The founder of Terra (LUNA), Do Kwon, believes that the project’s stablecoin of UST will continue to benefit from other blockchains issuing their own stablecoins. Mr. Kwon offered his insights on the future of UST in a Twitter commentary where he gave the analogy of Tesla winning as a result of more carmakers going electric.
This should be obvious but –
The more carmakers go electric, Tesla wins
Similarly, the more blockchains issue their own sovereign stablecoins, $UST wins
The true moon will be found in helping as many communities become self sovereign as possible 🌕🙏 https://t.co/1QJyR0uKjy
— Do Kwon 🌕 (@stablekwon) April 21, 2022
UST is an ‘800 pound Gorilla’
Do Kwon was responding to another tweet from a crypto community member who stated that he ‘was not clapping at Justin Sun’s attempt at building a UST lookalike’ and that it was ‘hilarious that everyone’s eyes are finally opening to UST as the 800lb gorilla it is.’
Earlier this week, Justin Sun announced that the Tron DAO was launching its own stablecoin of USDD backed by $10 billion worth of TRX.
Algorithmic Stablecoins Will Become the Norm
Terra’s Do Kwon predicted that algorithmic stablecoins would soon become the norm in a follow-up Twitter commentary. Furthermore, decentralized and self-sovereign stablecoins are clearly the future. He said:
Algorithmic stablecoins are fast becoming the norm – protocol-issued dollars coming to every blockchain. Detractors cannot see – currencies are ultimately backed by the economies that use them, and the future is clearly opting to use decentralized and self sovereign stablecoin.
This becomes easier to understand if you imagine fiat pegs are transient for stablecoins Think about it
The Luna Foundation Bitcoin reserves are now at 42,530 BTC, worth $1.69 billion
The Luna Foundation continues to be committed to its goal of backing its UST stablecoin with $10 billion worth of Bitcoin. At the time of writing, the Luna Foundation Bitcoin reserves currently stand at 42,530 Bitcoin, worth an estimated $1.69 billion using BTC’s current value of $39,560. The total Luna Foundation reserves now stand at $2.43 billion.
[Feature image courtesy of Do Kwon on Twitter]