Sam Bankman Fried popularly known as SBF believes that Terra’s stablecoin TerraUSD collapse was due to over excitement rather than manipulation. Sam Bankman Fried is a renowned name in the crypto world. He is the co-founder and CEO of crypto exchange FTX.
According to the information, TerraUSD which was pegged to the value of $1, dropped to an all-time low of about $0.04 on May 13. It has led to a significant selloff in the crypto markets globally.
What FTX CEO believes about TerraUSD’s recent failure
SBF was recently addressing the crypto community on TerraUSD’s price decline in a series of tweets. According to SBF, Terra’s narrative was an example of the creation of mass enthusiasm, excitement, promotion and memes. He said that the stablecoin’s promotion led people to trust in the asset, despite the reality that it was doomed to fail. The coin was backed by a bunch of risky assets for which information was publicly available.
Who is Elizabeth Holmes in the crypto world?
A 19-year-old Elizabeth Holmes founded the company Theranos in 2003. Theranos was a privately held American enterprise that was marketed as a game-changing health technology company. Elizabeth Holmes was found guilty on four counts for her part in Theranos for a conspiracy to defraud investors.
3) Recently, Do Kwon was compared to Elizabeth Holmes:https://t.co/1CsfBJ72WM
— SBF (@SBF_FTX) May 14, 2022
On Twitter, SBF reacted angrily to comparisons of Terraform Labs co-founder and CEO Do Kwon with Elizabeth Holmes. According to SBF, the TerraUSD stablecoin performed miserably. He informed that Terraform Labs had been open from the start in contrast to Holmes. SBF stated that Kwon and his colleagues did not mislead $UST the community.
Where was the Do Kwon wrong in Terra’s failure?
Kwon made a mistake by remaining near the stablecoin long after he should have backed off. SBF stated that Kwon never stated that $UST was backed by dollars in a 1:1 ratio, instead claimed that it was backed by a bunch of risky assets.
7) But he didn't claim that UST was backed 1:1 by USD. He claimed, accurately, that it was backed by a bunch of volatile assets. It was very publicly clear that those assets might go down, and the rest followed.
Again–I don't want to condone the behavior.
But it's different.
— SBF (@SBF_FTX) May 14, 2022
The information on assets backed for $UST was quite publicly available and it was a matter of fact that those assets may fall down.
