Three Arrows Capital co-founder Su Zhu, who previously invested in the LUNA token, commented on the collapse of the Terra ecosystem and the algorithmic stablecoin UST.

“It’s been an incredibly humiliating week and it’s hard to find the right words,” she wrote.

The risks of pegging the price of the UST’s algorithmic stablecoin to the dollar, according to Zhu, should spark discussions about the project’s future development, which critics are concerned about.

“The slow growth of the ecosystem will be more organic if it helps make it safer,” the investor said.

In early May, Su Zhu encouraged her Twitter followers to buy bitcoin-secured loans. With the proceeds, he offered to buy UST and deposit tokens on Anchor Protocol with a return of 18-20%.

At the time of writing, the tweet was deleted. Zhu apologized to his critics and said he should have been more careful in his predictions.

In general, Zhu called the event the “DAO Terra hack moment” and made a comparison with the attack on DAO, the first decentralized autonomous organization, in 2016. Then the damage amounted to 50 million dollars.

“I cannot predict the future, but I will do my part. [в восстановление проекта]”, added.

Recall that on May 8, the UST algorithmic stablecoin briefly lost its peg to the US dollar. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%.

On May 10, the asset’s quotes fell below $0.62 again. The decline continued on May 11, after which the LUNA cryptocurrency used to issue the UST fell to $0.3.

Later, Terraform Labs president Do Kwon presented a plan to restore the UST price. He called “absorption of the bid by UST holders who want to get rid of the asset” among the necessary steps.

On May 12, CoinDesk learned that Do Kwon is one of the anonymous co-founders of the failed algorithmic stablecoin Basis Cash.