Ethereum Founding Member Says Terra (LUNA) and UST Were ‘Plagued With’ Clear Defects — The Crypto Basic

According to Crypto Entrepreneur and Ethereum founding member Joel Dietz, LUNA and UST’s Design had several apparent flaws.

In 2018, the first iteration of the algorithmic stablecoin known as TerraUSD (UST), along with its sister coin LUNA, was met with widespread acclaim as a groundbreaking innovation.

According to Joel Dietz, a founder member of Ethereum and a crypto entrepreneur, the algorithmic calamity that sent shockwaves through the crypto market a few months ago was waiting to happen. According to Dietz’s video interview with The Korea Herald, the project mentioned above was plagued with glaring deficiencies in its overall design.

“It’s a project that had obvious design flaws. When I saw them (terraUSD and luna), I thought they shouldn’t exist, and no legitimate person should be hyping this project. But I was surprised that some of the industries were getting behind it,” he said.

For his role in creating the Ethereum platform, Dietz is widely considered a pioneering figure in the crypto community.

The Ethereum network engaged him as a co-founder in 2013. He worked with Vitalik Buterin for about a year on an internal project that ultimately became the well-known Metamask wallet.

Dietz, an academic researcher in the field of crypto-economics, claims that many previous models had attempted this precise approach and failed in a similar manner before TerraUSD and LUNA.

Although he said that TerraUSD and Terra Luna were both colored in similar ways, he did not refer to any of them as pyramid schemes. To refresh your memory, the LUNA and UST markets both plummeted in May, signaling the beginning of a highly volatile year for the cryptocurrency market, which, at the time of writing, is once again valued at less than $1 trillion.

Dietz said that the current phase of crypto winter was an anticipated outcome from an aggregation of risks arising from ventures that lack sound fundamentals and are overleveraged.  According to him, it was an explosion inside a system that lacked robust regulatory control. He believes that difficult times for cryptocurrency will persist until the weaknesses are corrected.

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