Thursday, March 28, 2024
HomeAltcoinsAvalanche founder thinks ‘Terra is as bad as Mt. Gox breach’

Avalanche founder thinks ‘Terra is as bad as Mt. Gox breach’

According to Avalanche creator Emin Gün Sirer, the collapse of Terra is worse than the DAO breach.

Avalanche creator Emin Gün Sirer, in a recent interview, compared the seriousness of the Terra crash to the Mt. Gox breach. He is concerned that an incident like this may lead to more regulatory scrutiny. Earlier this month, the Terra ecosystem collapsed, with the LUNA token plunging to zero after the UST stablecoin was de-pegged. After a catastrophic attack, Mt. Gox, the largest bitcoin exchange in 2010, went bankrupt in February 2014, triggering a dramatic decline in the price of bitcoin.

He also confirms that Avalanche has suffered from LUNA’s rapid expansion since it was garnering a lot of money. The success of LUNA spawned a slew of imitators eager to follow in its footsteps. Avalanche formed a collaboration with Terra, which proved to be “obviously problematic.” As a result, he concedes that the Avalanche Foundation has lost “some money.” In the broad scheme of things, he maintained, it was not an issue for the foundation.

The LFG now has around $60 million in its account. Even if it sold all of these coins at once, the sale would have little impact on the token’s price because its trading volume is substantially larger.

Read more:

Vaishali Goel
Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

two × one =

- Advertisment -

Most Popular