Ethereum (CRYPTO: ETH) co-creator Vitalik Buterin and FTX CEO Sam Bankman-Fried hinted at the troubles the stablecoin Terra USD (CRYPTO: UST) is facing in light of losing its peg to the dollar.
What Happened: A video of Buterin purportedly from three weeks ago was shared by Bankless on Twitter on Tuesday.
In the video, Buterin addresses certain stablecoins and said, “There’s also other projects doing insanely risky undercollateralized, barely collateralized sort of stuff.”
They are “trying to market themselves on how optimal they are but without really caring about how fat their fat tails are.”
Buterin said the “biggest fallacy” that people, especially newbies, have in terms of judging stablecoins is focusing on the price and focusing on the range between $0.99 and $1.01.
That mindset is “very wrong” because that …
Full story available on Benzinga.com