Why did the CTO of Tether and Bitfinex, Paolo Ardino, call Terra a ‘castle of cards’?

Bitfinex

Fall of the Terra network has given people the chance to openly criticize the shortcomings that resulted in its collapse

Another criticism Terra network received recently from Paolo Ardonio, CTO of Tether and Bitfinex said that the Terra (LUNA) project was however not having intention to be a rug pull scheme rather it was simply having poor design. While speaking over the market shattering crash of the Terra ecosystem Ardino compared TerraUSD UST’s algorithmic stablecoin with the ‘castle of cards’ which was to fall at any given point of time. 

So many people belonging to the crypto community highlighted a list of numerous doubtful comments or actions from the network going through the difficult times, Terraform Labs and its founder Do Kwon. There were a lot of questions related to his actions. There are also several reports that Do Kwon also worked on another algo stablecoin project that failed previously that was dubbed as ‘Basis Cash’. 

During his appearance at the podcast of Reimagine Unplugged this week, Ardonio made several comments regarding the project. Reimagine is a media company having sole focus on Web 3 related content and events, while at its podcast, the CTO of Testher stated that a bigger problem that Kwon had was his misguided sense of his self belief. 

Ardonio said that he himself doesn’t know about Do Kwon but while giving him the benefit of doubt, he said that the founder of Terra created this project being arrogant and while having this thinking that he was absolutely right. Following his firm belief he also thought that there were many who were supporting him and it could be of course considering the economic reasons most probably. That was not a rug pull rather, the project was poorly designed just like many projects are in general are designed poorly. 

Further he added that the project was more like a castle of cards and hence it could fall down but surely it was not like that he would have admitted it. It was simply because the project would have fallen down way faster and again he said it was clear to him and it was clear to many others that he knew it was surely a bad idea. CTO went on to say that the UST had turned out too big to keep maintaining its peg as the collateralization which is primarily in bitcoin and at the same time it attempted building its reserves. 

Source: https://www.thecoinrepublic.com/2022/05/20/why-did-the-cto-of-tether-and-bitfinex-paolo-ardino-call-terra-a-castle-of-cards/