Paolo Ardoino, the chief technology officer of Tether and Bitfinex, recently stated that the Terra project was designed quite poorly- and was not intended to be thought of as a rug pull. As he was speaking about the market-shattering crash of the ecosystem of Terra, Arduino likened the entire algorithm of USDT stablecoin to a castle of cards that was due to fall at any given point. In fact, several individuals in the crypto community had already highlighted quite a long list of dubious comments and actions that raised several questions regarding the actions of Do Kwon, the founder of Terraform Labs.
Tether CTO Believes Terra Was A Bad Idea
The CTO of Tether made his comments quite clear during an appearance on the podcast- Reimagine Unplugged- organized by a company that usually focuses on Web3 events and content. The CTO stated that a large section of the problem was with the founder’s misguided sense of self-belief. Arduino went on to mention that there was no other catalyst for the rug pull than Do Kwon’s arrogance- which led to the creation of a design that was poorly designed.
The CTO of Tether made it abundantly clear that he knew that the algorithm would fall down at one go- for it was simply like a castle of cards. Yet, Do Kwon couldn’t outright say it to anyone- else the ecosystem of Terra would have fallen down much faster. Arduino believes that it was pretty clear to all and sundry that this was quite a bad idea, to begin with. He also went on to state that the UST had come out to be too big to maintain its peg. Incidentally, it wasn’t strong enough to build its reserves for Bitcoin- but was still capable of leading to a crash in the market.
Cointelegraph had reported on Friday that Tether did post a decrease of 17% in its commercial paper holdings which backed the stablecoin reserves of USDT in Q1.