“LUNA Was Bad, Not a Scam,” Says Crypto Billionaire

A billionaire cryptocurrency entrepreneur said he does not believe Terra (LUNA) was a scam even though it was a bad project. Over the past week, the price of this currency has melted in the market and the collapse has sparked panic among investors.

In the last week of May, the cryptocurrency market saw a rapid collapse of a cryptocurrency that had reached large market cap positions. Furthermore, the project promised to be innovative as an algorithmic stablecoin, pegged to the value of the dollar.

However, with the collapse of this ecosystem, many now want to voice their opinion about what actually happened, apparently in a project where everything could go wrong and everyone knewor at least they should know.

“LUNA Was Bad, Not a Scam,” Says Crypto Billionaire

In an open letter to the market via his Twitter, the cryptocurrency billionaire and CEO of the FTX exchange, Sam Bankman Fried (SBF) said there are several ways a project can be bad, and not all of them the same.

That’s because many compared the end of LUNA to the American startup company Theranos, whose founder was Elizabeth Holmes. She called her company high-tech and was even compared to Steve Jobs, but was later convicted of lying to investors.

Thus, the CEO of FTX believes that LUNA differs from Theranos in that this stablecoin was transparent, including clear in its algorithm that it would fail one day.

“The LUNA/UST mechanism was not misrepresented – it was in fact very transparent. And I think at some point it would transparently fail.”

So SBF said that in its opinion the LUNA was not a scam, but just a bad coin with a mechanism that did not support what it promised. According to him, the market is infested with meme coins and this leads to a lot of massive enthusiasm for everything that is presented.

He is one of those who does not believe that LUNA is a ponzi, noting that many investors have recorded losses of more than 50% since the beginning of the year on various assets, such as Netflix stocks, AMC and the ARKK ETF, for example. . That is, according to SBF, these are bad investments, but that does not mean that they are fraudulent schemes.

Economist and trader are urging brokers to be more aware of what they are offering in their markets

While some argue that LUNA was not a scam, just a bad project, others believe that this coin should not be listed on serious exchanges. One of them is Alex Krüger, an economist and cryptocurrency trader who spoke out about the situation.

According to him, the The collapse of LUNA and UST is the worst in the entire history of cryptocurrency† mainly due to the rapid destruction of wealth† As such, he said brokers should stop offering ponzi schemes just because some want it, and as the market matures.

“It’s time to stop promoting ponzi-like assets like ‘blue chips’. No more publishing bad projects just because you quit. No more misleading marketing (defi 2.0 and 3.3 too). No more brokers offering ponzis just because high volumes come with costs. Enough of normalizing unstable founders.”

It’s time to stop promoting ponzi-like assets as “blue chips”. No more shillings just because you’re holding it. No more misleading marketing (defi 2.0 & 3.3 everyone). No more exchanges offering ponzis just because high volumes drive up costs. No more normalizing unstable founders.

— Alex Kruger (@krugermacro) May 13, 2022

Despite the controversial opinions on whether LUNA is a scam or not, the fact is that the coin was not as safe as claimed given its rapid fall and difficulty of recovery.

In any case, founder Do Kwon has revealed that he is reviewing plans to revive the project with his community, although nothing has been presented yet.