During an interview on "Mornings with Maria" Bitcoin Foundation Chairman Brock Pierce called the TerraUSD plunge a "demolition" and said most of the declines in the crypto market is connected to this "catastrophe."
BROCK PIERCE: Well, I mean, the decline looks more like a demolition at this point. Terra's cryptocurrency, otherwise known as Luna, has lost over 99% of its value, and that was the underlying asset that underpinned the price of the USD stablecoin. And so when the Luna coin lost all of its value, the asset that effectively underpinned the USD stablecoin lost its backing. And so that's why we've seen the stablecoin drop, bounce back a little bit in hopes of recovery, drop. And it may be in its final tailspin at this point we don't know.
Like 2008, if some of the largest financial institutions in crypto jump in to bail it out, there could be a recovery. Otherwise, the outcomes looking doubtful. And I just want to separate so you know the difference between this and other stablecoins, this is a purely algorithmic stablecoin. There's no U.S. dollars in a bank backing it like you've seen with… Tether or USDC. And I do think this concept is right and I think it is the future. This is just another one that may get into the history books as a lesson that got us to designing an algorithmic solution. But it's algorithmic. And so it's automatically adjusting. You're taking Terra coins to buy the USD coins, and it's based upon demand. It broke the buck, and it's put the entire crypto market into a tailspin. Most of what you've seen in terms of cryptocurrency declines recently is connected to this catastrophe.
WATCH THE FULL INTERVIEW HERE: