TRON founder Justin Sun thinks algorithmic stablecoins are still a good idea. Blockchain entrepreneur, who was a guest of Coindesk TV’s “First Mover” program on Friday, also said that some altcoin projects should now be like Dogecoin and Shiba Inu (SHIB).
“If I were Do Kwon…”
Justin Sun, also Grenada’s ambassador to the World Trade Organization, says the UST and LUNA collapse is a good lesson in what not to do when creating an algorithmic stablecoin . “If I were Do Kwon, I would have dealt with the situation much more carefully,” he said, referring to the Terra founder, in a statement he made on Friday, which we quoted as Kriptokoin.com.
Tron’s stablecoin USDD was launched 3 days before Terra crashed
What exactly accelerated Terra’s collapse still unknown. Some of the rumors are conspiracy theories that institutions like BlackRock (BLK) and Citadel Securities are forcing purges by exploiting a known flaw in network design. Others feel that blockchain cannot handle the stress as all risk assets are withdrawn due to an impending economic recession.
Justin Sun may be knowledgeable on the technical aspects of the UST’s downfall, considering that some experts have noticed the similarities between the USDD and the UST. He said he plans to launch the USDD stablecoin project three months ago and is grateful for the learning experience of the “dramatic” end of UST. However, Sun remains concerned that USDD could be attacked by shorts or face a similar fate to that of UST.
These altcoins should convert to SHIB and DOGE
Justin Sun says USDD is “very safe” in its early stages. At the very least, its $348 million market cap means that if it crashes, it won’t cause cascading problems in the crypto market like UST did. Sun said he expects a $2 billion valuation for the crypto, typically boasting.
He adds that he should be more careful with stablecoins. While they have proven to be risky, he is still a full supporter of algorithmic stablecoins, which may be the easiest way to create a truly regulation-free surrogate dollar asset. Finally, the CEO of TRON, more lightheartedly, said that Terra’s developers should convert their now worthless UST and LUNA tokens into meme cryptos like “SHIBA or DOGE”. “It’s the only way to fix this problem,” he said.
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