As Terra’s stablecoin, UST, and native token, LUNA, hurtle toward unheard-of lows, many in the crypto community are scrambling to assess how far-reaching the damage will be for decentralized finance as a whole.
This morning, after UST hit a record low of $.30—the stablecoin was designed to be pegged to the U.S. dollar—and LUNA—a week ago worth over $87—fell to less than $1, crypto firms began publicly announcing their exposure (or lack thereof) to these coins as part of an effort to help stave off market panic.
The loudest voices, though, were the silent ones. Many are rushing to assess which crypto firms had sizable stakes in UST and LUNA, and how drastic the impact of Terra’s crash will be on these firms, and, consequently, the wider crypto market.
A lot of big name crypto investors with egg on their faces. Their backers are a Who’s Who of crypto VC firms