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Algorithmic stablecoins need payments adoption to succeed, Goldman argues

For algorithmic stablecoins to have a long-term future they’ll need to find wider adoption for payments in the real economy, according to analysts at Goldman Sachs.  “Stablecoins have limited use as a payments medium at this time. If that real-world use case were to grow over time, it could create a more stable demand base for these assets,” the investment bank wrote in a research report dated Monday. “Hypothetically, an algorithmic stablecoin could survive in the long-run, if it were …

Terra community seems dead set against Do Kwon’s fork proposal

The majority of the Terra community is against the idea of forking the blockchain after its collapse last week, according to a preliminary poll on the network’s research and governance forum.  As of 6:45 a.m. ET on Tuesday, 90% of the more than 1,000 votes in the online poll reject a fork, which would create a new, parallel version of the Terra blockchain. The ballot is open to anyone who logs into the Terra forum, whether or not they hold …

South Korean politician calls for hearing on Terra crisis

Yun Chang-Hyun, a representative from South Korea’s ruling People Power Party, has called for a parliamentary hearing on TerraUSD (UST) after the stablecoin’s sudden collapse last week, local news outlet Newspim reported on Tuesday. “We should bring related exchange officials, including CEO Do Kwon of Terra, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors,” Chang-Hyun reportedly said today at a plenary meeting of the …

Binance’s LUNA investment, which peaked at $1.6 billion, now worth just $3,000

Binance CEO Changpeng Zhao said the crypto exchange made large paper gains on its investment in Luna but has now lost practically all of them. The exchange invested $3 million into the Terra ecosystem in 2018, receiving 15 million Luna tokens. At Luna’s peak price, that investment was worth $1.6 billion, according to Zhao. Yet due to last week’s collapse of Luna — and its related stablecoin TerraUSD (UST) — that investment has now plummeted in value to just $3,400. …

Terra fork won’t work, says Binance CEO Changpeng Zhao

Binance CEO Changpeng Zhao says he doesn’t think Terra’s plan of forking the blockchain will work because it won’t provide any value. “This won’t work,” Zhao said in a tweet on Saturday. “Forking does not give the new fork any value. That’s wishful thinking.” Zhao’s tweet came a day after Do Kwon, the founder and CEO of Terraform Labs, proposed a revival plan for Terra after its collapse last week. Kwon pitched forking the Terra blockchain — creating a new …

Do Kwon says he is ‘heartbroken’ in new statement, claims no UST or LUNA sold during crisis

Terraform Labs co-founder and CEO Do Kwon broke his social media silence early Friday evening with a trio of tweets about the collapse of Terra’s LUNA token and associated stablecoin, UST. 1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging. I am heartbroken about the pain my invention has brought on all of you. — Do Kwon 🌕 (@stablekwon) May …

Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holders

Do Kwon, the co-founder and CEO of Terraform Labs, pitched a revival plan proposal on Friday following the collapse of the algorithmic stablecoin UST and its related Terra-based asset, Luna. The proposal, included in a post on a forum for Terra discussion, amounted to a restart of the Terra blockchain. “The Terra community must reconstitute the chain to preserve the community and the developer ecosystem,” Kwon wrote.  Such a restart, as the proposal states, would create 1 billion tokens to …

Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard

Luna Foundation Guard (LFG), a non-profit organization formed to support the growth of the Terra ecosystem, has yet to answer a crucial question about its bitcoin reserves after Terra’s collapse. LFG accumulated a total of 70,736 bitcoins (worth over $2 billion) as “forex reserve” for Terra’s algorithmic stablecoin UST, which has recently severely depegged and created havoc in the crypto market.  While LFG acquired those bitcoins to save UST, it couldn’t. UST, supposed to be worth $1 at all times being a stablecoin, …

Terra disaster fuels work of Congress on stablecoin legislation

As Terra and Luna spiral, lawmakers are finding themselves pulled into the crypto orbit. Stablecoins have been a priority for US lawmakers since November. Following TerraUSD’s collapse this week, Congress is suddenly facing the issue of algorithmic stablecoins.  “This proves that algorithmic stablecoins are probably the riskiest of all,” Rohan Grey, a professor at Willamette University’s law school and author of several pieces of crypto legislation, told The Block.  Maxine Waters (D-CA), chair of the House Financial Services Committee, is …

Luna backer Su Zhu says UST collapse is ‘Terra’s DAO hack moment’

Three Arrows Capital co-founder Su Zhu has broken his silence on the collapse of the stablecoin TerraUSD (UST) and its related token Luna, an ecosystem he had supported. “This has been an incredibly humbling week and [it’s] difficult to find the right words,” he wrote on Twitter on Friday after UST, the algorithmic stablecoin at the center of the Terra blockchain, lost parity with the US dollar this week. Zhu acknowledged that a number of things had gone wrong. He …