Terra founder Do Kwon could launch a new decentralized stablecoin on Terra 2.0, a self-proclaimed insider said on Tuesday.
The claim was made by an active participant on the Terra governance forums, who goes by the moniker FatMan. They said that a “verified insider” told them that Kwon is currently designing a new decentralized stablecoin to be built on Terra 2.0.
The move would contradict the initial plan for Terra 2.0, which was to discard the TerraUSD stablecoin (UST). UST’s depegging was largely what caused the Terra crash, after the reserves accumulated by Kwon proved insufficient to support the stablecoin.
Will the crypto community accept a new Terra stablecoin?
While most reactions to FatMan’s post on Twitter were negative, some users opined that the token may work if it is fully collateralized.
Collateralized stablecoins such as USDT and USDC have so far proven to be the most stable among their peers, having weathered several market crashes since their inception in the last decade.
