LUNA Crash: Ethereum Co-Creator Vitalik Buterin Suggests 'Coordinated Sympathy And Relief' For UST Smallholders

LUNA investors were wiped out of around 95 percent of their wealth earlier this month.

Vitalik Buterin co-founded Ethereum back in 2014.

Source : Getty

New Delhi: Terra (LUNA) cryptocurrency has seen a massive plunge earlier this month, dipping around 97 percent below its all-time peak of $118. This was caused by the sudden ‘de-pegging’ of TerraUSD (UST) stablecoin. As per CoinMarketCap data, LUNA price stood at $0.0001851 at the time of writing. UST price, on the other hand, stood at $0.1284. Weighing in on the current scenario, Ethereum co-creator Vitalik Buterin suggested that UST smallholders should receive “coordinated sympathy and relief.”

As LUNA investors were wiped out of around 95 percent of their wealth earlier this month, the Terra community is now looking at ways to help the ecosystem recover and try to offer relief to the ones who incurred losses.

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On May 14, an amateur investor who goes by the name PersianCapital on Twitter posted that Terra should “prioritise” smaller wallets. “If Terra just focussed on the "poorest" 99.6% of wallets, then they could make this gigantic group 100% whole,” the tweet read.

Buterin quote-tweeted the post, saying that he “strongly” supports the idea. He called for “coordinated sympathy and relief” for average UST smallholders who “got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and SFYL for the wealthy.” For those unaware, SFYL is internet slang for “Sorry For Your Loss.”

Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about "20% interest rates on the US dollar" by an influencer, personal responsibility and SFYL for the wealthy. https://t.co/YfNlpvAizg

— vitalik.eth (@VitalikButerin) May 14, 2022

Buterin went on to highlight the Singapore employment law for comparison. “Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier. IMO things like this are good hybrid formulas,” he wrote.