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4. TERRA LUNA MINTED $1B IN STABLES OUT OF THIN AIR At genesis, Terra Luna minted $1b in a stablecoin called SDT out of thin air. These stablecoins are not backed by anything, no collateral, not created from burning LUNA: they come from nothing.

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Messari

@MessariCrypto

· Nov 16, 2020

As part of our ongoing transparency process, the @terra_money team has worked with us to publish the following details on their token stability mechanism (learn more in the "Launch Details" section) Full profile: messari.io/asset/terra/pr

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This stable used the same basic mechanism as UST, which means it could be called 'algorithmic' and 'decentralized.' EXCEPT:

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1. When Korean Won-denominated stables were demanded, they swapped directly from SDT to KRT instead of burning LUNA as demanded by the mechanism 2. THE MONEY WAS MINTED OUT OF THIN AIR!

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So when you read threads like this, it's hard to feel like they're genuine:

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Do Kwon

@stablekwon

· Jan 28

1/ Two quick thoughts in between calls: First, integrity is paramount - those of us fighting in the vanguard of this new movement have a responsibility to overprove that web3 is not about numbers go up only, but rallying communities around common values of self sovereignty.

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I'm anticipating a lot of blowback from Lunatics, so I won't be responding to replies here. I'm not trying to FUD anyone's bags, I have no short or long position on LUNA. I do think that the collapse of $LUNA and $UST, especially if 4pool is successful, might destroy DeFi.

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