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Luna's price fall is displayed at an electronic board of Bithumb's customer center in Seoul, Tuesday. Yonhap |
By Lee Min-hyungTerra's updated revival plan is sparking concerns over yet another prelude to the likes of a Ponzi scheme, as few investors regained confidence on the developer of the once-promising stablecoin.According to Do Kwon, co-founder of Terraform Labs, the company plans to rebuild the Terra ecosystem by setting up a "new chain without algorithmic stablecoin."The message came about a week after Terra and its sister token Luna began collapsing, leaving the global crypto industry in panic, as the outlook for the Terra ecosystem was considered by many to remain bright before Terra's UST stablecoin recently lost its peg to the U.S. dollar.Luna Foundation Guard, a reserve fund supporting the Terra ecosystem, failed to defend Terra's de-pegging and Luna's price fall even after making last-ditch efforts by selling almost all of its reserves last week.With investors' fury reaching its peak over the past week, Kwon shared the revival plan on Tuesday, but crypto moguls abroad and local business leaders remain skeptical, saying that Terra should stop experimenting further."'Algostable' has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables and we need to really emphasize that the two are very different," Vitalik Buterin, one of the co-founders of Ethereum, said.UST rapidly took the global spotlight, as its Anchor savings protocol promised to offer 20 percent in annual percentage yield, which the crypto tycoon called "dumb.""Coordinated sympathy and relief for the average UST smallholder who got told something dumb about '20 percent interest rates on the U.S. dollar' by an influencer, personal responsibility and SFYL [sorry for your loss] for the wealthy," he tweeted.Under the latest revival plan by Terra, the new ecosystem comes with a target staking reward of 7 percent per annum.But given Terra's credibility collapse, it appears tough for the company to regain its past glory in a short period of time, even if Kwon shared its new token distribution plans for UST and Luna holders.Hyundai Card Vice Chairman and CEO Chung Tae-young also stepped up criticism of Terra, saying that a top-level investment fund can never guarantee a 20-percent yield."To guarantee the 20-percent yield on deposits, it requires a complete reorganization of the global financial industry," Chung said. "No investment funds across the globe can keep such a promise."Economists advised investors to remain extremely careful before making crypto investments here, as the area is not regulated by the government."There are no legal safeguards for crypto investors here, so chances are very slim that the government and financial authorities take measures to help the victims from the latest Luna fiasco," Kim Dae-jong, professor of business administration at Sejong University, said."For the time being, the Supreme Court will also never rule in favor of crypto victims even if a similar kind of incident occurs again," he said. "Investors should pay extra attention and they should be held responsible for all their crypto investment activities."
출처 : https://www.koreatimes.co.kr/www/biz/2022/05/175_329301.html