Last July, Quan Yongkang mocked a British female economist who criticized the model of so-called algorithmic stablecoins.
Frances C CoppolaOPPOla) economists said on Twitter that the kind of self-correcting mechanism that TerraUSD uses will fail when panicked investors swarm out.
Do Kwon responded: “I don’t debate the poor on Twitter, I’m sorry I don’t have any change for her right now.”
He was lashing out at critics just days before TerraUSD plummeted to $0.30.
He wrote in a May 9 tweet: “In a short while you can hear reports from CT influencers about UST’s 69th off the ball. Or you can remember they’re all poor right now and go for a run. “
TerraUSD is a so-called algorithmic stablecoin designed to maintain its peg to $1 by encouraging traders to trade the asset in exchange for the Luna cryptocurrency.
This week, TerraUSD slumped well below $1 and the project nearly collapsed, with a loss of confidence sending its sister cryptocurrency Luna from around $80 to below $0.05 in a matter of days.
“It’s all fugazi. They’re fictitious assets,” said Neil Wilson, an analyst at trading platform Markets.com and a longtime cryptocurrency skeptic.
He added: “There is so much liquidity that whole new asset classes like cryptocurrencies and NFTs have to make up for it in order to absorb liquidity. Now liquidity is disappearing and inflation is tearing apart the demand for real hard assets. “