BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Are Alameda and Leading Crypto Venture Capitals Lining $2 Billion to “bailout” Terra’s UST?

by Dalmas Ngetich
May 10, 2022 - 12:00 am
in Blockchain
Are Alameda and Leading Crypto Venture Capitals Lining $2 Billion to “bailout” Terra’s UST?

On Tuesday, May 10th, the VP of research at TheBlock shared reports concerning Terra’s UST and expected plans to bail out the crypto protocol. Larry Cermak stated that rumors have been flying around about Alameda and Jump’s plans to provide $2 billion to rescue the protocol from its current mess.

There is a rumor spreading about Jump, Alameda, etc. providing another $2B to “bail out” UST. Whether this rumor is true or not, it makes perfect sense for them to spread. The biggest question here is, even if they can get it to $1 by some miracle, the trust is irreversibly gone

— Larry Cermak (@lawmaster) May 10, 2022

Larry further stated that both firms would find it daunting to raise UST back to its original value of $1. Even if they succeed in “performing the miracle,” Terra protocol has lost its trust, added Larry. The seasoned crypto researcher believes that investors will turn away from the algorithmic stablecoin after the recent crash of Terra’s ecosystem.

Terra’s UST has been very unstable for some days now, ranging from $0.0.68 to $0.98. The native token of the Terra ecosystem, LUNA, has also experienced its most recent price crash since its launch. LUNA, which traded above $100 last month, crashed to as low as $26 yesterday and currently trades slightly above $30.

Will UST Recover from its Crash?

Larry Cermak has lost faith in the stablecoin, which isn’t stable in the meantime, and believes the only way to retain its stability is to change the framework on which the token is built. Rather than raising more funding, Terra’s UST can be revamped from an algorithmic stablecoin to a collateralized stablecoin like USDT and USDC.

Meanwhile, Jake Chervinsky, an investment lawyer, recalled that many critics were excited some years back when USDT lost its peg and traded below $0.85. According to Jake, it will be better for Luna’s community members to wait for reality to play out.

Admittedly, UST and USDT are two different kinds of stablecoins in different situations. UST is algorithmic, while USDT is collateralized. However, the crypto ecosystem has seen stablecoins recover from intense volatility and the past.

With UST bouncing back and trading above $0.9 again, it will be less ambitious if investors hope for the protocol’s value to regain stability soon. More so, more funds injected into the Terra ecosystem can go a long way in ensuring stability for the token.

Tags: TerraUST
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service