Do Kwon Is Developing A New Decentralized Stablecoin On Terra 2.0

Terra founder Do KWON may be launching a new decentralized stablecoin on Terra 2.0, a self-proclaimed insider said on Tuesday. The announcement was made by an active member of the Terra governance forums, known by the pseudonym FatMan.

This move is contrary to the original plan of Terra 2.0, which was to abandon the TerraUSD (UST) stablecoin. UST's depegging was largely responsible for the collapse of Terra after the reserves accumulated by Kwon proved insufficient to support the stablecoin.

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Community reaction has been mixed. While most have reacted negatively to FatMan's Twitter post, some users have expressed the view that the token could be operational if it is fully collateralized. Collateralized stablecoins such as USDT and USDC have proven to be the most stable of their peers so far, having experienced several market crashes since their inception.

Image: 3DNews