> Also, technically the value of UST was fully backed by LUNA
And what was LUNA backed by? Unless somebody gives a better definition I'll say it was backed by two things. One was UST successfully working as a stablecoin. The other was the vague promises made by the charismatic founder that they were enabling a whole ecosystem with hundreds of developers, creating blah blah. In other words, people bought into the hype that Terra was to become the next big blockchain startup and holding LUNA was as good as owning early stock.
So that goes back to the first point, and as soon as Terra wasn't able to run an effective stablecoin what was left? "We're still here making noise" says Do Kwon. Face palm.
And what was LUNA backed by? Unless somebody gives a better definition I'll say it was backed by two things. One was UST successfully working as a stablecoin. The other was the vague promises made by the charismatic founder that they were enabling a whole ecosystem with hundreds of developers, creating blah blah. In other words, people bought into the hype that Terra was to become the next big blockchain startup and holding LUNA was as good as owning early stock.
So that goes back to the first point, and as soon as Terra wasn't able to run an effective stablecoin what was left? "We're still here making noise" says Do Kwon. Face palm.