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🔥Tether co-founder says Terra crash was the end for algorithmic stablcoins

Tether co-founder and first CEO Reeve Collins said there was nothing surprising about Terra's collapse and added that algorithmic stablcoins hardly have any future.

💬 "It's too bad someone lost money, though, it shouldn't have been a surprise. It's a stable coin with algorithmic backing. It's just a bunch of smart smart people got together and tried to figure out how to tie something to the dollar. And a lot of people withdrew their money in the last few months because they realized the volatility of this instrument. So this situation has had a cascading effect. This will probably be the end for most algorithmic stablcoins," he said.

For his part, Circle CEO Jeremy Allaire said UST represents a very risky foundation for stablcoin, but added that other people will still develop such assets.
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