According to an insider, Terra founder Do Kwon has planned to create a brand new decentralized stablecoin by using Terra 2.0.
An insider with the sobriquet ‘FatMan’ has claimed via a tweet that a verified source has tipped him about Kwon’s new venture. According to the unidentified source, who is also on the Terra governance forums, the new coin (unnamed yet) is going to be built on the new form of altcoin Terra (LUNA) being referred to as Terra 2.0.
The timing of this news break is of the utmost importance as the algorithmic stablecoin TerraUSD has recently vanished as a result of a nosedive disaster. This fact strengthens the insight that Do Kwon is not going incognito and he is planning to come back strongly. The possibility of this rumor coming true is very high as per the current situation including the airdrop last week.
If this rumor turns into reality, it would be completely against the common perception that TerraUSD is going to be discarded.
Will the New Stablecoin Able to Win the Trust of the Crypto Community Once Again?
The answer to this question depends on various factors but the situation at present suggests a negative answer as people have bombarded the tweet with negative comments. People are still in shock as the memory of Terra’s sudden crash (due to UST’s depegging) is still fresh in their minds.
FatMan’s tweet attracted heaps of negative comments which shows that people have not welcomed this situation are not in a position to invest in the same family. On the other hand, a small proportion of people linked the answer with collateral. According to them, the upcoming token can become acceptable if it is completely collateralized.
Collateralized stablecoins have proved more firm as compared to their ordinary peers. They had been able to withstand severe market crashes and bearish times in the past few years.
Some of the customers further added their stance that stablecoins are mandatory as ‘censorship-free cash’ and they didn’t accept this news. According to them, Terra is not going to launch another one in the near future.
The overall reaction of people towards this news is complicated but the people who have lost their money recently are not going to take the risk once again.
Present Condition of the Stablecoins’ Market
Now, after almost three weeks since the downfall of LUNA, the situation has started to improve gradually. Investors have started showing a slight interest in Terra as its price has started to rally in the last couple of days. Terra (LUNA) 2.0 has received a wonderful response against expectations. Several cryptocurrency exchanges have listed it as well and as people had expected, Binance has also done the same. It has recorded a 70% gain to reach a price of 19.54 dollars.
The past few days have been especially fruitful for LUNC, as evidenced by its accumulation of gains that exceed fifty percent in both of those time periods. After receiving the airdrop, the token has once again exhibited a behavior that is hard to predict.
