The last few days have been overly volatile for the cryptocurrency market, with the world’s largest Bitcoin cryptocurrency falling to its lowest point since 2020. This comes after the world’s largest stablecoin:Moon and Earth went from $ 1 to $ 20causing bearish sentiment throughout the crypto market.
According to Coinmarketcap, the entire cryptocurrency market now has a market capitalization of $ 1.2 trillion, less than half of the $ 2.9 trillion it was worth in November 2021. Cryptocurrency developers and enthusiasts are worried about the Earth crash Luna who cost his fortune to investors. This is what popular developers and CEOs are saying about the Luna Terra crash.
Dogecoin founder Billy Markus
Bille Markus, creator of the Doge meme coin, said on Thursday that it is “activated” every time it reads about The stable coins of Earth and Moon collide. “It’s literally the dumbest thing I’ve ever seen in my life,” Markus said on Twitter. In a series of tweets, Markus called Earth and Moon founders “tech bro hubris” and “degenerate players.”
“The tech brothers are operating in a bubble,” he said. “Everyone reads the same game theory book and thinks they understand everything about human nature.” They don’t know how humans actually behave out of their bubble when designing things.
Bill Ackman, the popular American investor and advisor, called the stable currencies of the Moon and Earth a threat to the entire cryptographic ecosystem. The algorithmically designed currency is a “pyramid scheme,” Ackaman said in a Twitter thread. Moon and Earth were designed to balance supply and demand to maintain stability. However, when the streak broke, Earth fell 100 percent on May 13th.
“Investors have been promised a 20 per cent return backed by a token whose value is only driven by the demand for new investments in the token,” he added. “There is no fundamental underlying business.”
Ackman explained in a Twitter thread that Luna only gained value after attracting global investors on account of digitization and took advantage of the fanfare surrounding cryptocurrencies. He believes that there is a great need for self-regulation in the cryptocurrency industry.
“The crypto industry should self-regulate other cryptographic projects without underlying business models before crippling regulation turns off the good and the bad,” he said. “Advertising tokens that are not supported by value-creating companies will destroy the entire cryptographic industry. Why and / or where I’m wrong,” he asked.
Binance CEO Chenpeng Zhao
Binance CEO Changpeng Zhao is unhappy with the way Earth developers have handled their stable currencies. In a tweet, Binance said he contacted developers behind Earth and made suggestions on how to mitigate the crisis while alluding to how the team behind the Earth network did not respond to Binance’s request to help them restore the network.
“While Binance always aims to be neutral, helpful and protective of all users and industry peers, and we usually refrain from commenting on other projects, this time I will break that rule,” CZ tweeted.
“I am very disappointed with the way this UST / LUNA incident has been handled (or not) by the Terra team. We have asked your team to restore the network, burn the extra coined LUNA and recover the UST plug. So far, we have not received any response. This is in stark contrast to Axie Infinity, which referred to the $ 625 million (approximately Rs 4,865 million) attack in March 2021, where the team took responsibility, had a plan and communicated proactively with us. “And we help,” Zhao posted.
Zhao also explained the reasons behind the cryptocurrency exchange to halt LUNA and UST trade: “An exponential amount of new LUNA has been minted due to flaws in the design of the Terra protocol. Its validators have suspended their entire network, so they cannot make deposits or withdrawals from any exchange, “he said. “Some of our users, unaware of the large quantities of freshly minted LUNA out of the bag, have started buying LUNA again, not realizing that as soon as deposits are allowed, the price is likely to fall even further. Due to these significant risks, we have suspended negotiations “.
Vitalik Buterin, co-founder of Ethereum
An investor named PersianCapital posted on Twitter that Terra should prioritize “smaller portfolios.” “If Earth only focused on the poorest 99.6% of the portfolios, then they could make this gigantic group 100% complete,” the tweet reads.
Buterin quoted the post as saying he “strongly supports” the idea. He called for “coordinated sympathy and relief” for small-scale landowners who were told by “an influencer, personal responsibility and SFYL for the rich to tell them something stupid about the 20 percent US dollar interest rate.” SFYL is the cryptographic slang for “Sorry For Your Loss”.