Terra

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Citadel Capital CEO Ken Griffin is arguing the collapse of Terra (LUNA) should serve as a wake-up call for regulators.
In a new interview, Griffin says the Terra (LUNA) “catastrophe,” which also saw the de-pegging of the blockchain protocol’s flagship stablecoin TerraUSD (UST), should motivate the authorities to come up with the necessary regulation, especially for stablecoins.

“I do think that the Terra catastrophe should be a wake-up call to D.C. to actually focus on thoughtful regulation. And in particular stablecoin, by virtue of its name, almost demands being appropriately regulated.”
The hedge fund CEO says that questions still surround the largest stablecoin by market cap and volumes, Tether (USDT), over the reserves backing it. According to Griffin, the evidence of the reserves backing stablecoins should be available and verifiable.
“Bloomberg’s done some phenomenal work on Tether. What’s behind Tether? The fact that we don’t know is utterly absurd.
If you’re going to represent that you have a stablecoin that’s worth a dollar you, better damn well be able to back it up with custody accounts that show you the assets that define that stability.”
The Citadel Capital CEO says that stablecoin issuers should be required by law to disclose the reserves backing the fiat-pegged crypto assets periodically just as exchange-traded funds (ETF) are required to reveal the underlying assets regularly.
“Just as we have daily disclosures of the ETF holdings, we should have periodic disclosure of what backs the stablecoins so that people know their money is safe or not.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.



Featured Image: Shutterstock/klyaksun
The post Citadel Capital CEO Ken Griffin Says Terra (LUNA) ‘Fiasco’ Should Be a Wake-Up Call for Regulators appeared first on The Daily Hodl.


Citadel Capital CEO Ken Griffin is arguing the collapse of Terra (LUNA) should serve as a wake-up call for regulators. In a new interview, Griffin says the Terra (LUNA) “catastrophe,” which also saw the de-pegging of the blockchain protocol’s flagship stablecoin TerraUSD (UST), should motivate th...

dailyhodl.com

Citadel Capital CEO Ken Griffin Says Terra (LUNA) ‘Fiasco’ Should Be a Wake-Up Call for Regulators

Currently, the market is experiencing one of the most painful weeks this year, and it was exacerbated by Terra’s crash.
While Terra’s ecosystem boss, Do Kwon, has been putting forward revival plans, he also amended one. But more importantly – he did so while the proposal 1623 was being voted on.

Titled ” Rebirth Terra Network,” Kwon revealed that he modified the proposal to accommodate community feedback.
He also asserted that if a user has already voted but disagrees with the new modifications, they can still vote “No.” Users have a few more days to change their vote.
The first revision increases genesis liquidity. The initial liquidity parameters have been bumped up from 15% to 30%. Terra says that this measure aims to increase token supply at launch and mitigate future inflationary pressures for pre-attack aUST holders, post-attack LUNA holders, & post-attack UST holders.
The second revision introduces a new liquidity profile for pre-attack LUNA holders. Wallets with less than 10K LUNA will have the same genesis liquidity, 30% unlocked at launch. while the rest, 70% of liquidity, will be locked for a two-year vesting period.
The third change is involved in decreasing distribution to post-attack UST holders. Allocation for post-attack UST holders will be reduced from 20% to 15%.
What irked many in the community was the fact that Terra went on to make these changes in the middle of an on-chain vote.
One of the users tweeted,

“Agreed, wtf is this. How can you amend something already voted for…. Hey guys, we half way through the vote, you voted, buuuut, we changing what you voted for… No more faith, luna will crash no matter what they do…”

Terra’s credibility has been questioned several times. But the mid-vote changes have further strained the confidence of investors who have still held on to LUNA in hopes of recovery.
At the time of writing, more than 79% voted in favor of the proposal, while around 15% voted “no with a veto.” The proposal will be discarded if the latter percentage crosses 33.4%, even if it receives approval from the majority of validators.
Kwon continues to be under heavy scrutiny as the life savings of many investors vanished in a matter of days.
Recently, official records revealed that Kwon had reportedly dissolved Terraform Labs Korea, shutting its headquarters and the only branch in Busan, days before the collapse of LUNA and UST.



Terra's proposal 1623 was being voted on when the Do Kwon announced three revisions.

cryptopotato.com

Terra Under Heat After Amending Proposal Mid-Vote

Binance comes to the rescue of Terra projects, Chainalysis introduces new tools to track stolen crypto funds, Do Kwon's new proposal for a Terra hard fork and more in this week's DeFi newsletter.

cointelegraph.com

Finance Redefined: Lifeline for Terra projects, proposed Terra hard fork and more 

The CEO of Terraform Labs is facing possible criminal charges in the wake of two leading cryptos collapsing earlier this month.
In a new report, Yonhap News says that South Korean authorities are considering bringing Ponzi scheme charges against Do Kwon, the founder of Terra (LUNA) and algorithmic stable coin TerraUSD (UST), both of which have plummeted by over 99.99% recently and causing losses of around $40 billion.

At issue is the Anchor Protocol, a decentralized finance (DeFi) platform built on top of the Terra ecosystem’s blockchain, which offered investors of UST returns of approximately 20%.
The report says that the Financial and Securities Crime Joint Investigation Team will investigate the case, and quotes one member of the prosecutor’s office as saying,
“Kwon’s remarks promising returns could provide a key clue.”
Do Kwon and fellow Terraform co-founder Daniel Shin are also being sued by five investors who claim to have lost $1.1 million due to “fraud and other financial irregularities,” says the report.
The legal pressures on Kwon come in the wake of Luna Foundation Guard (LFG) dumping billions of dollars worth of Bitcoin (BTC) in an attempt to salvage UST after it de-pegged from the US dollar.
At time of writing, Terra is worth a tiny fraction of the $80 price tag it held just weeks ago, currently trading for $0.000131.
While TerraUSD did briefly recover to the $0.25 level back on May 14th, the crypto asset has been steadily falling from its weekly high of $0.11 this past Monday.
UST is down 19.25% over the last 24 hours and priced at $0.063425.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.



Featured Image: Shutterstock/Digital Store/Natalia Siiatovskaia
The post Terra (LUNA) Founder Do Kwon Facing South Korea Investigation Over Claims of Ponzi Fraud: Report appeared first on The Daily Hodl.


The CEO of Terraform Labs is facing possible criminal charges in the wake of two leading cryptos collapsing earlier this month. In a new report, Yonhap News says that South Korean authorities are considering bringing Ponzi scheme charges against Do Kwon, the founder of Terra (LUNA) and algorithmi...

Terra (LUNA) Founder Do Kwon Facing South Korea Investigation Over Claims of Ponzi Fraud: Report


Bitcoin Foundation Chairman and Tether co-founder Brock Pierce sat down with Bloomberg, weighing in on the demise of TerraUSD as well as the market crash.



Users of the coin have reportedly lost millions of dollars in the collapse, after Terra’s algorithmically engineered stablecoin lost its 1-to-1 peg with the U.S. Dollar, causing a hemorrhaging effect where both Terra and Luna’s price plummeted.



Pierce says that while this experiment got “too big, too fast,” it hasn’t negatively impacted the rest of the ecosystem, noting that “the problem with this experiment is that people put too much trust in it too soon.”



Do Kwon recently amended his proposal to revive the Terra blockchain, suggesting the creation of Luna (LUNA) 2.0 tokens on an entirely new blockchain. However, many of come to question the legitimacy of his proposal, as his amendment to it comes in the middle of an on-chain vote.  



The executive commented that while the Terra LUNA and UST experiment got ‘too big, too fast,’ it hasn’t negatively impacted the rest of the ecosystem. However, he also said, “the problem with this experiment is that people put too much trust in it too soon.”



Are stablecoins as risky as Yellen says?



Last week, U.S. Treasury Secretary Janet Yellen warned about the risk of a “bank run” where investors flee stablecoins, which could potentially cause a contagion of other markets. Valued at $160 billion, stablecoins have grown so much that many believe there is a form of systemic risk.



Pierce, one of Tether’s co-founders, told CNBC that “Tether breaking its peg is an overstatement,” referencing the many deviations in price Tether has previously experienced. Speaking to market uncertainty, Tether recently announced in its latest quarterly assurance report that its stablecoin reserves are “fully backed”.” 



“The Group’s consolidated reserves held for its digital assets issued exceeds the amount required to redeem the digital asset tokens issued,” the report stated. Following Terra’s crash, several other stablecoins also lost their dollar peg amidst the turbulent market, including Tether. 



“Well, that was a flash sort of crash that happened for all of a moment. It certainly wasn’t sustained. Yes, that’s not a positive occurrence. But it immediately recovered,” Pierce noted. Yet, Pierce’s trust in algorithmic stablecoins hasn’t been shaken, as he says he believes “there is a place for them in the future.”



Indeed, the ripple effect of the volatile market has renewed calls for immediate regulation of virtual assets. 



Fabio Panetta, a member of the executive board of the European Central Bank, recently remarked that “stablecoins are vulnerable to runs,” highlighting that there is ‘no guarantee that stablecoins can be redeemed at par at any time.”




"Every one of these events is hardening and battle-testing the overall ecosystem" @brockpierce shared his POV on the @terra_money crash #NewEconomyGateway pic.twitter.com/8jHRdQvLxh— Bloomberg New Economy (@BBGNewEconomy) May 19, 2022




Impact on crypto adoption



Pierce continues to see a long-term value in the crypto space. 



“We are absolutely seeing large numbers of people in Latin America using this technology for things like remittances. The fundamentals are there,” he highlighted.



Chainalysis had also noted in its last year’s report that Latin America, along with parts of Africa and  Central and Southern Asia see more web traffic to peer-to-peer (P2P) platforms than other regions. Some experts might credit part of that adoption to Latin America’s high inflation rate. IMF noted last month that “inflation in Latin America’s largest economies is the highest it’s been in 15 years.”



The countries are also moving fast in the region. 



Panama’s National Assembly pushed a crypto bill last month that is waiting for President Laurentino Cortizo’s assent. Additionally, top exchanges have opened shop in the Latin American region of Brazil while Argentina is also seeing accelerated crypto adoption.



“In Latin America, unlike other regions, cryptocurrencies play a role beyond the speculative. They play a social role as well, both in sending remittances and also as an alternative to local fiduciary currencies,” says Belo founder Manual Beaudroit.



Gunshy on NFTs?



Despite expectations of increased crypto adoption in the coming months, the executive’s investment advice comes down to the diversification of investment portfolios. 



“Make sure that you’re managing your risk sufficiently. Make sure that you don’t have all of your eggs in that basket,” Pierce recommended.



As the markets remain volatile, the executive is also seeing a direct correlation between the “old economy and the new economy” which is likely to continue for now.  



“We see large-cap cryptocurrencies, like Bitcoin and ether, fall less during downturns and rise less during upturns and the smaller caps have bigger fall. That’s likely to continue to be the pattern,” he added.



The executive also cautions investors against putting too much trust in new projects. 



Notably, despite being optimistic about the future of NFTs, Pierce confessed that he wouldn’t invest “heavily” in that vertical.



What do you think about this subject? Write to us and tell us!.
The post Tether Co-founder Brock Pierce Cautions Against Putting ‘Too Much Trust’ Into New Projects appeared first on BeInCrypto.


Bitcoin Foundation Chairman and Tether co-founder Brock Pierce sat down with Bloomberg, weighing in on Terra's crash.
The post Tether Co-founder Brock Pierce Cautions Against Putting &#8216;Too Much Trust&#8217; Into New Projects appeared first on BeInCrypto.


Terra price	$0.00016
Low - High 24H	$0.000102 - $0.000184
Market cap	$1.04B
Volume 24H	$536.85M
All time high	$119.18 -100.00% April 5th 2022
All time low	$0.000001 15855.44% May 13th 2022
Genesis date	N/A

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