Terra’s UST criticized by Peter Schiff, here’s why

Vladislav Sopova

Terra’s Bitcoin (BTC) Journey Doesn’t Impress Peter Schiff; dr. Doom claims there is a better option for UST


Peter Schiff Proposes Crypto Gold Standard for the First Time, Do Kwon RejectsIs Peter Schiff the real Satoshi?

Seasoned Bitcoin (BTC) critic and “gold bug” Peter Schiff has released a statement regarding Terra Foundation’s aggressive Bitcoin (BTC) purchasing policy and the technical design of UST stablecoin.

Peter Schiff Proposes Crypto Gold Standard for the First Time, Do Kwon Rejects

Mr. Schiff has taken to Twitter to criticize the idea that Terra’s native USD-pegged stablecoin, UST, could be backed by Bitcoin (BTC). According to him, this scenario is not tenable.

This design – when “one cryptocurrency is backed by another” – looks even worse than backing euros with US dollars for Mr. schiff. It should not be treated as an instrument equivalent to gold-backed fiat money.

At the same time, creating a “crypto gold standard” is not a complicated task for Mr. Schiff. He proposes to simply back UST stablecoin with gold reserves.

Do Kwon, founder and CEO of Terraform Labs, the development studio behind Terra (LUNA) blockchain and UST stablecoin, isn’t thrilled with the proposal:

Rather be dead tbh.

It should be noted that Terra’s solution to increase Bitcoin (BTC) reserves has already sent LUNA price to new historic highs.

Is Peter Schiff the real Satoshi?

Key figures from Web3 and cryptocurrencies commented on this eccentric dialogue. While Morgan Creek Digital’s Anthony Pompliano called it “wild”, Binance CEO Changpeng Zhao mocked Peter Schiff. Ironically, he compared Peter Schiff to Satoshi Nakamoto, the anonymous creator of Bitcoin (BTC):

Peter might be Satoshi as he does well pretending he doesn’t understand #bitcoin. (April 1st)

As we previously reported, Terra’s Anchor Protocol reached $12 billion in TVL in UST deposits yesterday.

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