By Sander Lutz
3 min read
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.
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.
The trend continued across Twitter, with perhaps some firms worried remaining silent could imply exposure.
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.
Even NFT collections and DAOs got in on the trend.
Others, meanwhile, doubted some of the claims, and called for a bit of empathy on a very bad day for many.
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.
Decrypt-a-cookie
This website or its third-party tools use cookies. Cookie policy By clicking the accept button, you agree to the use of cookies.