{"id":12359,"date":"2022-05-15T01:01:33","date_gmt":"2022-05-15T01:01:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sam-bankman-fried-ust-crash-was-predictable\/"},"modified":"2022-05-15T01:01:33","modified_gmt":"2022-05-15T01:01:33","slug":"sam-bankman-fried-ust-crash-was-predictable","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sam-bankman-fried-ust-crash-was-predictable\/","title":{"rendered":"Sam Bankman-Fried: UST crash was \u2018predictable\u2019"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<p>Sam Bankman-Fried, entrepreneur, founder and CEO of FTX crypto exchange, <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1523854018682015744\">tweeted<\/a> that the crash of Terra\u2019s UST and LUNA was \u2018predictable\u2019, generating a Twitter thread that has since gone viral. He said:\u00a0\u00a0<\/p>\n<p><em>A good point someone brought up recently: \u2018Stablecoin\u2019 is used to mean multiple different things. Just as the outside view skeptics predicted, during a large market move a stablecoin blew out. \u00a0Just not the stablecoin they predicted. Which was predictable, if you knew the details. This isn\u2019t a comment about good vs bad\u2013it\u2019s about how important it is to know the details!\u00a0<\/em><\/p>\n<h2>SBF\u2019s take on algorithmic stablecoins before the crash<\/h2>\n<p>In a Bloomberg interview with Joe Weisenthal, co-host of the Odd Lots podcast, SBF was asked about his take on the rise of algorithmic,\u00a0partially-backed stablecoins.\u00a0Weisenthal inquired:<\/p>\n<p><em>One of the most interesting phenomenon happening right now is the rise of Luna and UST. Luna has this Treasury Reserve consisting of a lot of Bitcoin, which seems a little dicey, but some people say any idea of an algorithmically-backed stablecoin is a perpetual motion machine \u2013 it\u2019s only a matter of time before it fails. Do you believe there can be a truly decentralized stablecoin? What do you make of these projects?<\/em><\/p>\n<p>SBF:\u00a0<\/p>\n<p><em>I do have some sympathy to the perpetual motion machine crowd here. They can serve some useful purposes, but if you do zoom out, right, and you say, this is a stablecoin, backed by volatile assets, what\u2019s gonna happen in a big market move. Right? Like, you know how this plays out.<\/em><\/p>\n<p>The screenshot of this exchange, posted on Twitter, attracted all kinds of comments. Here is one seemingly reasonable suggestion: \u00a0<\/p>\n<p><em>Has someone thought of minting a decentralized stablecoin backed by a basket of tokens tied to commodities and securities? If it were done right, it might be less volatile than a stablecoin backed by Bitcoin.<\/em><\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/sam-bankman-fried-explains-why-ust-crash-was-predictable\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Sam Bankman-Fried, entrepreneur, founder and CEO of FTX crypto exchange, tweeted that the crash of Terra\u2019s UST and LUNA was \u2018predictable\u2019, generating a Twitter thread that has since gone viral. He said:\u00a0\u00a0 A good point someone brought up recently: \u2018Stablecoin\u2019 is used to [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":12360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/12359"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=12359"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/12359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/12360"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=12359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=12359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=12359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}