Vitalik Buterin Thinks Terra Crash-Like Events Have “Silver Linings”

The demise of the Terra ecosystem, according to Ethereum co-founder Vitalik Buterin, was a “morally defining moment” for the sector.

Vitalik feels optimistic despite the market downturn

Appearing in an interview with Fortune, Vitalik Buterin shared his musings regarding the crypto market and how the current market conditions are affecting both the present and the future of the space.

He stated at the outset of the conversation that the industry has seen ups and downs in the past and will do so in the foreseeable future. He reiterates that while if the “down periods” are difficult, it is also at these times that the most important projects are constructed.

The 28-year-old continues by saying that events like the early June Terra disaster had “silver linings.” He claims that such situations are a “morally categorizing moment” where one can see a character far more clearly than when everyone is having a wonderful time.

“At least in my experience, [what] always happens is this morally clarifying moment where you can see how different people responded and you get a much better view of what their character is and what kind of people they actually are than you do during the good times.”

Epic Death of Terra

Recently, Terra’s stablecoin, UST, de-pegged from its 1:1 relationship with the USD, and both the stablecoin and the platform’s native cryptocurrency, LUNA, saw significant price declines. This was a catastrophe that had a detrimental impact on the entire cryptocurrency market.

Since that time, Terra blockchain has been indefinitely suspended, and UST has not been linked to the USD. The original LUNA has since been renamed Terra Classic, and it has nearly fallen by 100% from its peak price of $119.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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