Vitalik Buterin is one of the biggest names in the crypto industry. Buterin has co-founded the cryptocurrency of Ethereum, which is in great demand at the moment. He has recently expressed his thoughts and point of view on the tactics and process of evaluation of an algorithm. Buterin has put forward his ideas about how to conduct experiments to understand the sustainability of a stable coin. Buterin took to the internet and commented about the same keeping in mind the huge setback that Terra had suffered a few days back.
The ecosystem of Terra had collapsed and incurred losses amounting to billions of dollars. The stable coin of the company, popularly known as the TerraUSD, also collapsed completely. Vitalik posted a blog last Wednesday where he discussed the recent incident. He stated that the spike in security towards the decentralized finances was a welcome effort. However, he also warned the traders not to write to each and every algorithm of stablecoins completely. He stated that the market does not require a boost up of stablecoins but they need to stick to the basics in order to perform well in the future.
Vitalik Speaks About Terra Tragedy
Vitalik Buterin pointed out that most of the stablecoins had faulty algorithms and will eventually incur a loss in the long run. However, other stablecoins are very much capable of standing the test of time. Speaking on the topic, the owner of Ethereum provided the traders with a couple of alternatives. He stated that if the number of stable coins comes down to zero, there is a fair chance that everyone will be extracting a fair amount out of the coins.
Vitalik also spoke about the possibility of implementing a negative rate of interest on stable coins. He stated that it might look impossible at first, but one should try and give it a shot.