decrypt.co
As Terra’s stablecoin, UST, and native token, LUNA, hurtle toward unheard-of lows, many in the crypto community are scrambling to assess how far-reaching the damage will be for decentralized finance as a whole.
This morning, after UST hit a record low of $.30—the stablecoin was designed to be pegged to the U.S. dollar—and LUNA—a week ago worth over $87—fell to less than $1, crypto firms began publicly announcing their exposure (or lack thereof) to these coins as part of an effort to help stave off market panic.
CEOs, co-founders and investors rushed to Twitter to make such declarations.
Dragonfly had 0 LUNA exposure - sauces
— Darren Lau (Lau, Lau) 👘 (@Darrenlautf) May 11, 2022
Multicoin Capital had 0 LUNA or UST exposure https://t.co/m9UDWABZiw
— Composability Kyle (@KyleSamani) May 11, 2022
Kyle Samani, co-founder of Multicoin Capital, told Decrypt why he decided to join in on clarifying his firm’s position: “People have made rumors about us before. [I] figured I would squash.”
In addition to Dragonfly Capital and Multicoin Capital, Framework also claimed “safety” from the UST/LUNA carnage.
framework has no exposure to ust or terra and all portfolio companies are safe
— Vance Spencer (@pythianism) May 11, 2022
The trend continued across Twitter, with perhaps some firms worried remaining silent could imply exposure.
i guess we're all doing this right now@6thmanventures has no exposure to ust or terra and all portfolio companies are safe
— Mike DAOdas (🏌️♂️, ⛳️) (@mdudas) May 11, 2022
Since we are all doing this: @OnJunoHQ has no exposure to UST, LUNA and the broader Terra ecosystem. Stay safe out there frens.
— OnJuno (@OnJunoHQ) May 11, 2022
As one Twitter user observed, the trend began to resemble the phenomenon of Facebook users in a certain area marking themselves safe during a disaster event.
All funds right now https://t.co/NPeBG8KJak pic.twitter.com/YaHFZs0Iia
— gainzy (@gainzxbt) May 11, 2022
Even NFT collections and DAOs got in on the trend.
We have no exposure to $LUNA, $UST or the Terra ecosystem.
We wouldn't need any in any case because we have the best community and @byWassies NFTs are stabler than stablecoins.
— ByWassies (@bywassies) May 11, 2022
Fingerprints has no exposure to UST or Terra because we’re innit for the art
— Fingerprints (@FingerprintsDAO) May 11, 2022
The loudest voices, though, were the silent ones. Many are rushing to assess which crypto firms had sizable stakes in UST and LUNA, and how drastic the impact of Terra’s crash will be on these firms, and, consequently, the wider crypto market.
A lot of big name crypto investors with egg on their faces. Their backers are a Who’s Who of crypto VC firms 🫣
This will definitely have big ramifications pic.twitter.com/AmHgo9dr6P
— Laura Shin (@laurashin) May 11, 2022