Do Kwon’s TerraUSD stablecoin has collapsed, and the luna token has lost 99 percent of its value. The crypto community is now focusing on his propensity of ignoring criticism of his initiatives by calling critics “poor.”
Kwon made fun of a British economist who questioned the so-called algorithmic stablecoin idea in July.
When panicked investors started stampeding for the exit, Frances Coppola tweeted that self-correction mechanisms, such as those utilized by TerraUSD, often known as UST, will fail.
Kwon responded, “I don’t debate the poor on Twitter, and sorry I don’t have any change on me for her at the moment.”
He was savagely putting down detractors just days before TerraUSD, which was the world’s third-biggest stablecoin and was supposed to trade at $1, tumbled as low as $0.30.
“Anon, you could listen to CT influencers about UST de-pegging for the 69th time. Or you could remember they’re all now poor, and go for a run instead. Wyd,” Kwon tweeted.
TerraUSD’s creator, Kwon, and Terraform Labs, the company he co-founded, did not answer calls for comment.
TerraUSD is an algorithmic stablecoin that was designed to keep its peg to $1 by pushing traders to swap the asset for the luna cryptocurrency.
TerraUSD fell below $1 this week, and sister cryptocurrency Luna fell from about $80 to around $0.05 in a matter of days as a result of the loss of faith.
Neil Wilson, a long-time crypto skeptic and analyst at trading platform Markets.com, said: “Everything is fugazi. They’re fictitious assets.”
He added: “There’s been so much liquidity that entire new asset classes like crypto and NFTs had to be made up to absorb it. Now that liquidity is disappearing and inflation is ripping people want real, hard assets.”