Ethereum co-founder Vitalik Buterin claimed in a new podcast that the Terra team is manipulating the market.
Vitalik Buterin criticizes Terra team
Vitalik Buterin said in a long podcast with New York Times columnist Ezra Klein that the Terra team is manipulating the market. The Ethereum founder says what the Terra team does with their Bitcoin reserves remains a mystery. Terra LUNA and UST pushed the limits of its algorithmic mechanism under selling pressure in May. Minted to keep the stablecoin UST price stable at $1, LUNA tokens plunged the ecosystem into collapse.
Buterin now says that no one knows what the Terra team is doing with their massive Bitcoin reserves. The Canadian software developer stated that the collapse revealed that decentralization does not always provide a solution. If the algorithm is poorly implemented, it will still break even if it is open and transparent. According to Buterin, the reason the Blockchain project failed was due to the “bad economy”.
The Ethereum co-founder recalls that many “smart people” believed Terra was “basically bad.”
Terra revived in September
cryptocoin.comAs you follow, Terra founder Do Kwon is on the run after South Korea issues an arrest warrant for him. However, the successors of the crashed project, Luna Classic and Luna 2.0, recently experienced a resurgence this September. As Buterin said, prices move very manipulatively.
The fall after the Ethereum merge caught Buterin off guard
Buterin also stated that he was “surprised” by the drop in Ethereum (ETH) price following the strong hype merger. Although Ethereum’s transition to PoS was a huge success, the price of the second largest altcoin has dropped 18% since Sept. 15. Crypto bulls waiting for the rally were disappointed. While waiting for the rally after the rise, the bulls learned that it was a sell. Buterin also thinks that the drop in ETH price is exacerbated by the weak performance of US stocks.
Although Ethereum successfully completed the merger expected since 2015, ETH price reached $1,280. Its price hit a new low on Wednesday, when the Fed announced its third consecutive rate hike of 0.75%. The data shows that these days, miners are making a record profit of around $20 million. ETH price is currently stable on the day, trading at $1,327.90. It has failed to break the $1,400 resistance since Sept. 18.
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