Įkūrėjas „Ava Labs“, Eminas Günas Sireris, has offered his opinions on the crash of Terra's algoritminė stabili moneta, mokestis.
According to Gün Sirer, there is a need for decentralized algorithmic stabilias kainas in the ecosystem due to the censorship vulnerability of fiat-backed stablecoins.
Net visiškai užtikrintos stabilios fiat monetos atsiejo. Net kai kurios silpnos algo stabilios monetos atsigavo.
Kai kurios mintys. ??
– Eminas Günas Sireris? (@el33th4xor) Gali 10, 2022
Gün Sirer continued that a decentralized ecosystem needs a decentralized stablecoin that’s censorship and seizure resistant. However, he doesn’t think there’s room for more than one decentralized stablecoin.
There isn’t room in the market for a dozen, or half a dozen, or even just two algorithmic stablecoins. This is a market where the biggest one wins and all others lose.
In his opinion, only one algorithmic stablecoin can succeed, which will likely be the one with the most experienced team and provides users the most value. This factor is why copycat projects are failing, according to the Avalanche founder.
To him, it will take more than just a technical team to lead an algorithmic stablecoin project successfully. It has to be a team that has the best open market operations.
Gün Sirer added a surprising statement that a U.S.-based team wouldn’t be able to succeed with an algorithmic stablecoin project because of the norminė bazė in the country. He said the only three countries with the proper regulatory framework for an algorithmic stablecoin team are Singapore, Switzerland, and South Korea.
The crypto CEO also stated that for any algorithmic stablecoin to succeed, the underlying chain must have a high capacity and be very resilient under high load. At the moment, only a few chains can boast of this.
Citing these reasons, he believes that UST will recover and could go on to become the real force among algorithmic stablecoins.
On the inability of UST to defend its peg, Sirer stated that every single stablecoin, including fiat-backed stables, had been atrištas vienu metu.
However, his views do not sit right with all of the crypto community, which believes that more than one algorithmic stablecoin can survive in the ecosystem.
As of press time, UST was trading at $0.92 after losing its peg to the dollar.
Source: https://cryptoslate.com/avalanche-founder-claims-only-one-algorithmic-stablecoin-can-succeed-defends-terras-ust/