335
122 shares, 335 points

MakerDAO founder Rune Christensen described the UST and MIM stablecoins as “solid ponzis” in a tweet earlier this morning. Abracadabra.Money and Terra founders Daniele Sestagalli and Do Kwon immediately responded. Christensen suggests that altcoin projects will “go to zero” when things turn upside down. Details at Kryptokoin.com .

MakerDAO founder hits rival stablecoins

Rune Christensen sparked controversy by sharing her thoughts on two of DeFi’s fastest growing stablecoins. The MakerDAO founder said that TerraUSD (UST) and Magic Internet Money (MIM) are two competitors to MakerDAO. In the tweet, Christensen described the projects as “solid ponzis” and “scams”.

Rune Christensen: These altcoin projects will go to zero

MakerDAO founder’s most striking statements also come from the above tweet. Christensen argues that TerraUSD (UST) and Magic Internet Money (MIM) will be removed from the market:

UST and MIM are solid ponzis and I respect that. You can definitely earn good money from them. But they are not designed for durability and will go to 0 when the market truly reverses. Now stop trying to trick users looking for real stability as your exit liquidity.

  • Terra founder Do Kwon was replying to the above tweet as “I thought you were dead”…

https://twitter.com/ stablekwon/status/1478184831544864772

  • Abracadabra.Money founder Daniele Sestagalli also weighed in, advising Christensen to “focus on de-polluting the world” and “taking care of DeFi meanwhile” it did.

Behind the scenes

Both Kwon and Sestagalli have raised their voices against DAI in the past, arguing that the stablecoin is not decentralized enough because it is partially backed by USDC. According to Christensen, the UST and MIM rely on unsound stabilization mechanisms that can shatter under the pressure of excessive market forces. The theoretical argument of MakerDAO’s founder is that UST is based on continued demand for LUNA, while MIM is secured by “poor quality” or re-encumbered assets.


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122 shares, 335 points

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