In the last few days, the entire crypto market was rocked by a catastrophic event that hit one of the top stablecoin cryptos (Terra). It was attacked by a malicious actor with lots of resources leading Terra to depeg from the USD. This triggered a mass selloff in the greater crypto market which was already suffering from the bearish pressure of geopolitical tensions and monetary policies.
As the crypto market plunged, people started blaming Luna and even pointing fingers at other stablecoins suspecting similar weaknesses. Is this the right way of thinking?
For me, it is very unfortunate to see people in the crypto space step on each each other whenever something unfortunate happens. We’ve seen this many times under various circumstances:
- When an exploit happens (e.g. Axie Infinity and SLP)
- When multiple large scale outage happens (e.g. Solana)
- When a project misses its deadline (e.g. Cardano)
- When there is congestion in the network (e.g. All popular chains)
- When transaction fees become unpractically high (e.g. Ethereum)
- When a project is sued by the SEC (e.g. Ripple)
The above are definitely worrying issues that need to be addressed by the corresponding project. However, it is one thing to bring the issue to everyone’s attention, it is quite another thing to step on the project when it is already down. Some people even use the opportunity to claim that the project they support is so much better. For me, this is very bad form.
The recent incident hurt a lot of people and brought out the trolls in droves. Ordinary people started being vocal as they had lost significant savings. I take pity on the multitudes of anonymous people that were hurt by this incident.
What I cannot understand though is when prominent and respected figures in the crypto space start bashing Terra Luna and even start questioning other stablecoins publicly if they have this weakness. What are they trying to prove? Do they think that pointing out the flaws in other crypto is going to win them points because the crypto they support is “better”?
In actual fact, it is quite the opposite. As you can see with Terra, once it sank, confidence in the entire crypto market sank with it leading to a significant drop in all of crypto. So what lesson should we learn from this?
Like it or not, the entire cryptocurrency space is categorised under the same asset class. Therefore, cryptocurrencies should be treated as one big boat. If a leak happens where one crypto is sitting, that crypto may go down lower in their side of the boat, but the entire crypto space can go down with it if the hole is not plugged immediately. Whenever a crypto ridicules another one causing its hole to become larger, it is actually indirectly sending the entire boat down.
Moral of the story? We should all help to grow the entire crypto space instead of pulling each other down. We are all in the same boat. We float together, but we can also sink together. Therefore, let us help each other instead of working to bring each other down.
In other matters, after more than a year of donating to our adopted educational charity (Akaraka), we have decided to look into helping another charity that helps disadvantaged children. Therefore, from this month, we have started donating to the Ngee Ann Polytechnic Fund.
Donations to the Ngee Ann Polytechnic Fund will go towards helping students in need through bursaries, student aid grants and/or sponsored/subsidized student development activities.
WISH Pool is the creator of Cardano SPOT Check, an online resource for Cardano Stake Pool Operators for maintaining their nodes. We are actively helping several Cardano communities and were a recipient of the IOG delegation in 2021 and the Cardano Foundation delegation in 2022. If you like this article, we greatly appreciate if you will delegate your ADA to WISH Pool. You will be earning interest rewards while indirectly helping the lives of disadvantaged children. This is because WISH Pool pledges to give at least 10% of its own profit to educational charities so that successful students can help get their families out of poverty. Let’s help grow the community together!