Max Keiser is a well-known and outspoken Bitcoin enthusiast and advocate. He talked about the predictions surrounding stablecoin and cryptocurrency projects that might not be able to survive the ongoing bear market pressure. The entire crypto community is talking about the intense crash of the LUNA token that breaking of the UST pegging.
To this end, cryptocurrency investors are on the lookout for the next big crash to set up the perfect exit strategy for them. According to on-chain metrics, LUNA native to Terra blockchain was used as a peg to support its algorithmic stablecoin project UST recently crashed by 94% within 24 hours. The nature and the circumstances of the crash were unnatural, but it shocked many crypto proponents.
Max Keiser Compares Cardano with UST
Max Keiser recently claimed that Cardano native currency ADA could be the next big loser and experience the same cursed fate as UST. It is worth noting that UST tokens are automatically pegged to the value of an alien currency. The UST investors can swap 1 UST for a $1 LUNA token at any given time by opting to remove it from circulation.
The crash of Terra uses a multi-billion dollar Bitcoin backup to ensure its peg stability. However, despite all the precautionary measures, UST lost its $1 stable position. The currency started to show signs of faltering last Sunday, and despite the $1.5 billion Bitcoin loan added by LUNA Foundation, its value crashed exponentially to 30 cents apiece.
Terraform Labs CEO Do Kwon is currently working on reestablishing the peg of the UST token and trying to rehabilitate its $1 peg. On the other hand, Cardano founder Charles Hoskinson has come forward to defend the position of the ADA token and claimed that the Djed stablecoin is unlikely to lose its dollar peg any time soon. Hoskinson further explained that the main cause of the UST downfall could be an organized DeFi attack.
He further postulated that the UST destabilizing attack could be orchestrated by hackers or high net worth investors. He also explained that Shen’s leverage absorbs the pressure of massive sell-offs from ADA price by securing its collateral ratings. Nevertheless, investors are still not convinced that ADA is completely immune to such attacks that thrashed the Terra Ecosystem. Keiser claimed in his recent tweet that ADA could be the next LUNA.