In the past week, UST, the stable cryptocurrency built on Terra’s blockchain, massively crashed and lost its peg to a dollar.
The crypto hedge fund Arca that holds $500M in assets has suffered from the massive UST drop during the week.
However, On May 10, Rayne Steinberg stated that:
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“UST will ultimately maintain its peg.”
So, the cryptocurrency fund Arca stays hopeful as it assumes that UST will eventually recover someday and stay on the top of the crypto ecosystem.
Also, the CEO of Arca, Rayne Steinberg, has said that the fall of UST had also provided with several opportunities for the fund. For instance, Arca was able to purchase UST stablecoin for a lower price and deposit it with Bohemian-based cryptocurrency exchange FTX that paid 100% of the annual percentage yield.
Steinberg also noted that in 2009 and 2008, Arca experienced similar crisis scenarios. Such occurrences provided the company additional experience in how to act in similar situations and turn this massive UST drop to their own advantage.
Moreover, according to the statistics, on May 10, the stablecoin had decreased to $0.63 while LUNA was trading at almost $25. Yesterday, the trading price fell even more and now stands at only $1.15.
Arca is a cutting-edge blockchain-based digital asset investing business that maintains the Digital Asset Fund, which includes LUNA as the key asset. The company seeks to integrate SEC-registered closed-ended fund norms with the efficiency of the blockchain’s technology.
