Ava Labs founder Emin Gün Sirer explains why AVAX was unaffected by the UST and LUNA collapse. Last week, the entire altcoin market went red with the collapse of the Terra ecosystem. Terra’s reserve reserves include 1,973,554 AVAX after selling around 80,000 BTC to stabilize the UST price. Selling this amount of AVAX could cause a surge.
AVAX CEO: We reset the LUNAs we had
The instability of the UST and subsequent collapse of the LUNA will likely remain one of the most popular topics in 2022 and for years to come. On this subject, Ava Labs founder Emin Gun Sirer said in a recent interview with Steven Ehrlich of Forbes that LUNA has been positively impacting the market for some time. He found the accident extremely upsetting and added that Avalanche has sold all of its LUNAs:
Terra was an ecosystem that started a little before us. It has received a lot of investment recently. Funds were going to Terra instead of AVAX or Solana… We reset the LUNAs we had. We were only able to convert some of the USTs to dollars. The Avalanche ecosystem was not affected by this collapse, only slightly damaged.
Emin Gün Sirer thinks that at one point LUNA’s rapid growth has hampered projects like Avalanche. This has caused many new projects to copy the developments in Terra. However, Emin Gün Sirer says that Avalanche stays away from such initiatives.
Emin Gün Sirer, Terra collapsed Mt. Gox hack
In part of the interview, Sirer described the Terra collapse as Mt. Gox stock market hacked. This hack happened several years before the collapse of UST and LUNA. Emin teacher, Terra debacle Mt. Gox’s DAO attack, noting that the cryptocurrency market was still in its infancy at the time of the hack:
Terra crash of Mt. I would compare it to Gox. I think Mt. Gox case was much more important for the cryptocurrency market, it affected more projects and investors. Now as an industry, we have learned an important lesson about algorithmic stablecoins.
Meanwhile, Sirer stated that they have partnered with the Terra ecosystem in the past, exchanging $60 million worth of AVAX for LUNA and UST. However, this attempt was unsuccessful as Terra collapsed.
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