Co-founder Reeve Collins believes the demise of TerraClassicUSD (USTC) could be the catalyst that triggers the demise of other algorithmic stablecoins, according to CNBC.
In Davos, Switzerland, Collins was speaking to a news outlet when he made the remark. According to him, it was not a surprise that the company went under.
Collins commented:
- “It’s an algorithmic-backed, stablecoin. So it’s just a bunch of smart people trying to figure out how to peg something to the dollar.”
According to Collins, many UST holders have sold their tokens in recent months after learning that the stablecoin was unsustainable. As a result, the stablecoin collapsed, and the rest of the cryptocurrency market followed suit.
Algorithmic stablecoins, despite the present bear market, have not yet seen their worst. Other algorithmic stablecoins may soon follow UST, leading to its demise, according to his predictions.
But Circle CEO Jeremy Allaire, who is also the CEO of USD Coin (USDC), feels that the era of algorithmic stablecoins is far from over.
He went on to say,
- “I’ve compared algorithmic stable coins to the Fountain of Youth or the Holy Grail. Others have referred to it as financial alchemy.”
