As Terra’s stablecoin, UST, and native token, LUNA, hit unprecedented lows, many in the cryptocurrency community are scrambling to distance themselves from the harm done by Terra’s cryptocurrencies.
This Wednesday (11), after the UST hit a record low of $0.30 — the stablecoin was designed to be pegged to the US dollar — and the LUNA cryptocurrency — which a week ago was worth $87 — dropped to less than $1, companies linked to the crypto sector began publicly announcing a lack of exposure to these coins as part of an effort to avoid market panic.
CEOs, co-founders and investors flocked to Twitter to make such statements.
“Dragonfly had zero exposure to LUNA,” wrote the account Darren Lau, referring to Dragonfly Capital.
Kyle Samani, co-founder of Multicoin Capital, did the same — zero LUNA and zero UST.
To Decrypt, Samani told why he decided to join the movement: “People have rumored about us before. [Eu] I thought they were going to squeeze us.”
In addition to Dragonfly Capital and Multicoin Capital, Framework also stated that it is safe about the bleeding of UST and LUNA.
“Framework Ventures have no exposure to UST or Terra and all portfolio companies are safe.”
The trend continued on Twitter, with perhaps some companies worried about remaining silent so as not to involve themselves in such exposure.
6th Man Ventures also copied. “I think everyone is doing the same now.”
OnJuno, digital bank for cryptos, has been on the bandwagon. “No exposure to UST, LUNA and the Earth ecosystem”.
As one Twitter user noted, the trend began to resemble posts that usually occur on Facebook when disaster strikes and people say they are safe. “All funds are safe at this very moment,” wrote user Gainzy.
Even the NFT and DAOs collections were on the wave.
The loudest voices, however, were silent. Many are racing to assess which cryptocurrency companies have had sizable stakes in UST and LUNA, and how drastic the impact of the Earth crash will be on these companies and, consequently, on the broader cryptocurrency market.
“Many big-name crypto investors are embarrassed,” wrote journalist Laura Shin. Along with a ‘who’s who’ screenshot of investors in the crypto sector.