💣Cryptoverse Reflects on ‘Ponzi-like Assets’


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May 13, 2022

It's Friday the 13th, yet the crypto market has finally turned green after several red days in a row. Here's what you missed today.

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Source: CoinMarketCap.com

After Terra's Collapse, Cryptoverse Reflects on 'Ponzi-like Assets', Role of VCs, and 'Ignorant' Crypto People

A debate about what crypto investing should be like, how crypto projects are promoted and whether 'bitcoin-only' is the best strategy to follow for average investors, has re-emerged in the community following the spectacular collapse of the terraUSD (UST) stablecoin and the entire Terra (LUNA) ecosystem.

"It's time to stop promoting ponzi-like assets as 'blue chips'," wrote the crypto trader and economist Alex Krüger. He added that there should be "no more deceptive marketing," and said exchanges should not list "ponzis" even though "high volumes drive fees."

Meanwhile, Udi Wertheimer, a Bitcoin (BTC) proponent and developer, said that what shocked him the most about LUNA's collapse was "how many investors didn't understand the dynamics AT ALL."

Nic Carter, another popular Bitcoin proponent and partner at Castle Island Ventures, said investors didn't do the necessary due diligence on UST "because crypto people are mostly completely ignorant of economics and think they're discovering everything for the first time [...]."

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Binance Resumes LUNA & UST Trading Despite CZ Being 'Very Disappointed'

"The Terra blockchain has resumed block production," Terra's Twitter account posted on Friday at 12:46 UTC. It added that network validators "have decided to disable on-chain swaps, and IBC channels are now closed."

In total, the network has now been halted and restarted two times after a proposal with "emergency actions" was discussed in the Terra community yesterday. The actions included a proposal to burn the remaining UST in the community pool.

In an update at 14:28 UTC, Binance said it will resume spot trading for LUNA and UST against its own binance USD (BUSD) stablecoin as of 14:30 UTC. It added that deposits and withdrawals have also opened.

"I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all," Binance CEO Changpeng Zhao said.

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'Broke' LUNA Investor Comes to Do Kwon's House

A furious terra (LUNA) investor appears to have come knocking at the door of the Terra mastermind Do Kwon (also known as Kwon Do-hyeong) looking for answers after the token spectacularly collapsed. South Korean police are hunting for an unidentified person who reportedly broke into the apartment complex in which Kwon resides and rang the doorbell – but a social media star says it was him.

A livestreamer who uses the handle Chancers has publicly claimed to have been the trespasser in question. On his latest AfreecaTV stream, Chancers claimed that he had lost USD 1.56m in a LUNA investment and said he would turn himself in to the police.

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