It was a dark chapter in the history of the crypto industry; the demise of the Terra (LUNA) network and its associated stablecoin TerraUSD (UST) has left many crypto investors in the dark. According to the founder of the Cardano (ADA) network, Charles Hoskinson, it is important that other projects learn from Terra’s mistakes.
‘Crypto don’t go too fast’
According to Hoskinson, the demise of Terra is a good example of why a crypto project does not want to grow too quickly. Going too fast can lead to building on shaky foundations, Hoskinson says at CoinDesk†
According to Hoskinson, that’s also why the development of the Cardano network may be slower than some had hoped. He also acknowledges that this may be an eyesore for users, but for a very important reason.
“If you go too fast, like we saw with Luna and we saw with $10.5 billion in hacks last year, you might as well get it to work. Until it doesn’t anymore. And then when it stops working, it’s a catastrophic failure and everyone loses their money.”
Cardano goes for long term
Cardano is playing the long-term game, Hoskinson said. The project is very aware that the roll-out of new updates is taking a long time. It is very important that everything is thoroughly tested before new features are launched on Cardano’s main network.
“We always say that it is not the first to succeed, but the best of the first hour. The people who will survive are those who will be tested under stress and show resilience.”
Hoskinson therefore expects that several crypto projects, like Terra, will collapse because they run too fast. In the long run, this will mean that only the projects with strong foundations will survive and the market matures, Hoskinson said.