Sonic Introduces High Yielding Algorithmic Stablecoin, Sparking Concerns Post Terra-LUNA!

Jakarta, Pintu News – Sonic, a new blockchain project, has again shaken up the cryptocurrency world with plans to launch a high-yielding stablecoin algorithmic. In the shadow of Terra-LUNA’s tragic downfall, this announcement has drawn pros and cons from the global crypto community.

The new stablecoin is claimed to offer an Annual Percentage Rate (APR) of up to 23%, a fantastic figure reminiscent of the TerraUSD (UST) collapse. Despite the promise, many investors remember the trauma of the past and are wary.

Check out the full news below!

Sonic Introduces High Yielding Algorithmic Stablecoins

Sonic, recently rebranded from Fantom, is introducing an algorithmic stablecoin with a potential yield of up to 23% APR or around 3.76 million IDR per 16.35 million IDR locked up. The project is fronted by Andre Cronje, founder of Yearn.finance and now one of the minds behind Sonic Labs.

In a post on the X platform on March 22, 2025, Cronje revealed that the stablecoin will offer APR >200% at TVL of 163.5 billion IDR, 23.5% at 1.63 trillion IDR, and stabilize at 4.9% at 16.35 trillion IR. Cronje mentioned that they will start developing the full version of this stablecoin in the near future.

Despite his optimism about the technology, Cronje admits to being traumatized by algorithmic stablecoins due to past experiences.

He wrote, “Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement.”

This reflects the prudence of experienced developers in dealing with the risks of the complex cryptoeconomic model. Moreover, the crypto industry itself is still recovering from various financial incidents in previous years.

Also read: Michael Saylor’s Strategic Move: Doubling Bitcoin Holdings Amid Market Volatility!

Terra-LUNA Trauma: An Old Unhealed Wound in the Crypto World

The Terra-LUNA collapse in May 2022 became one of the biggest tragedies in cryptocurrency history, with total losses reaching an estimated 654 trillion IDR. Their stablecoin, TerraUSD (UST), failed to maintain its peg to the dollar and slumped to a price of around 4,900 IDR, setting off a chain reaction across the ecosystem.

In a matter of days, LUNA tokens previously valued at over 1.96 million IDR fell to 137 IDR. This event shook investor confidence and led to the longest crypto winter the industry has ever experienced.

The incident also forced regulators around the world to take serious action. The European Union, through the Markets in Crypto-Assets (MiCA) bill, officially banned the issuance of algorithmic stablecoins to prevent systemic risk.

The move reflects global concerns over the stability of cryptocurrencies if they are not backed by real assets. Regulatory and risk discussions are back in the spotlight with the re-emergence of algorithmic stablecoin projects like Sonic’s.

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Sonic Offers Super Fast Transaction Speeds and Soaring TVLs

Sonic claims to be the world’s fastest Ethereum Virtual Machine (EVM) network, with a finality time of just 720 milliseconds. This means that any transaction that occurs on the Sonic network can be permanently confirmed in less than a second.

This technical excellence has caught the community’s attention, especially since its test net achieved this performance on September 8, 2024. Sonic also bills itself as the fastest blockchain solution for developing dApps and decentralized financial systems.

After Fantom’s rebranding, Sonic’s total value locked (TVL) jumped 66% to around 4.13 trillion IDR. This figure shows the market’s increased confidence in this project’s technical capabilities and innovation.

However, launching a high-yielding algorithmic stablecoin remains a big test of Sonic’s reputation. Will Sonic be able to prove itself as the pioneer of a new generation of stablecoins, or will it be a repeat of an old tragedy?

Conclusion

Despite Sonic’s impressive technology and speed, the launch of a high-yielding algorithmic stablecoin remains a cause for concern. While many consider this project to be a revolution in the cryptocurrency world, Terra-LUNA’s history is a bitter reminder of the potential destruction that could occur.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Sonic unveils high-yield algorithmic stablecoin, reigniting Terra-Luna ‘PTSD’. Accessed March 24, 2025.
• Featured image: Crypto Briefing