The US Regulator Points Out Reasons For The Terra (LUNA) Collapse! Urges To Be Careful With LUNA 2.0 Price.?
The post The US Regulator Points Out Reasons For The Terra (LUNA) Collapse! Urges To Be Careful With LUNA 2.0 Price.? appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide
Following the Terra (LUNA) collapse, the head of the Office of the Comptroller of the Currency (OCC) is highlighting the reasons. And Urges to be careful with Luna 2.0 price
Acting Comptroller of the Currency Michael Hsu, in a recent interview on Yahoo Finance Live said that he believes Terra’s collapse revealed the crypto space’s instability.
He quotes that there are a number of facts that the Terra crash has bought into light. But he just wants to focus on three. Firstly, he asserts that stablecoins are not stable as the name suggests. Because the $18-dollar stablecoin faced a drastic crash so quickly.
Second he says many times the surge in cryptocurrencies are the result of just hype. He believes this is also one of the reasons for the Terra crash as it was hyped.
Third he points out that the threat of transmission exists. As the selloff triggered a bigger selloff in the bitcoin market. According to Michael Hsu, there was a loss of half a trillion in such a short period of time. This reflected other stablecoin’s stability as well, resulting in Tether’s depegging.
Hence, he asserts that a few of these lessons show some volatility that exists in the cryptocurrency space. Everyone needs to take this seriously.
Know Your Returns
Further, Hsu talks about Terra being called a ponzi scheme. He quotes that a crypto hedge fund manager once said that if we ever fail to know where the return is emerging from, then it’s most likely coming from a future holder.
There was a lot of hype along with a lot of returns which he had pointed out last year. This statement was made by Hsu in order to question where the returns are coming from exactly ?
Accordingly, he urges everyone that it’s important to understand and know the answer to your source of return. If anyone is investing in crypto, this is even more important.
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Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
