The biggest problem with stablecoins, actually all of cryptocurrency, is how people are overlooking the building of value. Everyone wants a short cut.
With the TerraLuna situation, what was backing UST? LUNA. And what value did that have? What was taking place on chain that was worth anything?
No value.
That is what needs to be corrected.
Posted Using LeoFinance Beta
Truth is, Terra had some good intents (it's hard to say that now), but they got it wrong where it mattered most. The algorithm was simply flawed and yes, the backing was simply poor, sad enough, most new algorithmic stable coins are repeating the same mistake.