Sonic Labs has canceled plans to launch a lot of algorithm Starble Recoin for the US dollar, and instead decided to develop an alternative to the Arab Emirates.
On March 22, Andre Cronje, co -founder of Sonic Labs, is studying the US dollar algorithm Starble Lecomin with an annual percentage (APR) annually (APR) per year, CoteTelegraph reported.
But a week later, the company canceled the course.
“We will no longer announce USD -based algorithm stabilization in the X POST on March 28,” we will disclose mathematically constrained numerical deham, which is settled and displayed on USD, which is not a USD -based algorithm stable. “
Immediately after the UAE announced that it will release Digital DIHAM Central Bank Digital Currency (CBDC) in the fourth quarter of 2025, the strategy will occur.
source: Other CRONJE
Khaleed Mohamed Balama, president of the UAE central bank, said that the blockchain -based DIRHM could help to improve financial stability and fight financial crimes. According to a report from Khaleej Times, digital currency is allowed with physical opponents of all payment channels.
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SONIC faced criticism of the Stablecoin plan.
This reversal follows the widespread criticism of Sonic’s original plan to begin the algorithm Starble Lecomin, a model that raised concerns throughout the Crypto industry since the collapse of the Terra ecosystem in 2022.
Cronje himself admitted that he had previously experienced post -traumatic stress disorders (PTSDs) related to the previous cycle of algorithm Starble Recoin.
“Our team is convinced that our team has broken a stable coin today, but the previous cycle gave too much PTSD that we should implement.”
In May 2022, a $ 40 billion terra ecosystem collapsed, and in a few days, billions of dollars were erased in a few days. Terra’s algorithm stablecoin Terrausd (USST) produced an annual percentage rate (APY) of more than 20% in the anchor protocol before collapse.
When USST lost its dollar Peg, DO Kwon, co -founder of Terraform Labs, visited X to share the rescue plan. At the same time, the value of Token LUNA’s sister, the top ten crypto projects by market cap, plunged to $ 0.84 at more than 98%. Luna was traded north of $ 120 in early April 2022.
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The collapse of the algorithm Starble Lixin publisher created shockwaves between encryption investors and lawmakers.
To reduce systematic risks, the European Union market in the Crypto Assets Regulation (MICA) bill will ban algorithm Starble Lecomin to avoid the same failure as another terra.
According to David Pakman, a coinfund management partner, Stablecoins is more and more used in smaller daily payments than large transfer.
Pakman said on March 27 at X’s Chain -reaction Live Show, “We have shown that the size of each Starble Recon’s trading has declined significantly, which said at the Chain -reaction Live Show on Cottelewraph on March 27.
https://www.youtube.com/watch?v=1iyxu9w47to
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