According to crypto experts, Shiba Inu is almost in the same category as terra LUNA.
Shiba Inu might crash due to project’s lack of utility
Bitgert has proven a solid project during this bear market.
Bitgert might start exploding soon
The market is still bearish, although most coins have posted an impressive recovery over the past 24 hours. Among the coins that have been posting some good recovery this time is Shiba Inu, which had been one of the most hit coins by the bear market. But the crypto experts are warning that Shiba Inu is not out of the wood yet. There are still a lot of threats around this coin that might make it the next Terra LUNA.
According to crypto experts, Shiba Inu is almost in the same category as terra LUNA. These are projects that have not been built on a solid product. They have no real use-cases. The biggest challenge for the Shiba Inu project is the lack of utility. This is because Shiba Inu started as a meme coin and built its huge marketcap on hype and not in a real product.
That’s why experts warn that Shiba Inu might be the next Terra LUNA, especially if the whales keep selling. The lack of use-cases has also been identified as one of the major reasons why Shiba Inu price has plummeted over the last 6 months.
In fact, a lot of Shiba Inu investors have been selling to join more solid projects with real use-cases. Some of these projects have been the Bitgert (BRISE), one of the fastest-growing cryptocurrencies. When Shiba Inu has been losing investors, Bitgert holders’ count has been surging.
The Bitgert project is also among the few cryptocurrencies that kept stable prices during the current bearish market. This is because Bitgert investors were still holding, and there were a lot of new investors joining the project. That shows how solid Bitgert is.
The Bitgert team is building one of the high-utility blockchain projects in the industry. Bitgert ecosystem has a range of products spanning from DeFi, NFTs, and Web3 products. Some of the major Bitgert products have already been released and are the reason Bitgert is a solid project.
Bitgert has built its own blockchain, the BRC20 chain, while the Shiba Inu is still running on the Ethereum chain. The Bitgert BRC20 blockchain is also the fastest blockchain and has a zero gas fee. There are many exciting products and projects that the Bitgert team is adding to this ecosystem.
In conclusion, Shiba Inu has to get a real use case, or it might become the next Terra LUNA. In the meantime, Bitgert is expected to keep growing exponentially because of the massive utility it offers. Bitgert is also projected to attract more Shiba Inu investors if the SHIB price continues crashing.
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LUNA Investor Arrested For Knocking On Do Kwon’s Door After Losing $2.4 Million In Terra Crash
A crypto investor has been arrested after knocking on Do Kwon’s door following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He lost about $2.4 million and is now under investigation by the South Korean police. “I felt like I was going to die,” he said about losing his investments.
Investor Under Investigation for Going to Do Kwon’s Home
The collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST) has wiped out a large number of investors. One investor in particular sought direct answers from Kwon Do-hyung (aka Do Kwon), CEO of Terraform Labs who is behind the two cryptocurrencies.
The investor, known as “Chancers,” is a Korean social media personality who conducts streams on cryptocurrency-related topics. He lost around 3 billion won ($2.4 million) in the LUNA and UST collapse. He told BBC News:
I felt like I was going to die. I lost a lot of money in a short period of time. Around $2.4m of my cryptocurrency was wiped out.
He explained that he was angry with the lack of communication from Do Kwon after LUNA and UST went into freefall. He then searched online and found Kwon’s home address in Seoul.
“I wanted to ask him about his plans for LUNA,” Chancers said. “I suffered a huge loss and wanted to talk to him directly.”
The frustrated investor traveled across his home city and knocked on Kwon’s door on May 12. He streamed the event on his online channel; about 100 people were watching at the time.
However, after ringing the doorbell of Kwon’s condominium, his wife answered the door and said her husband was not home. She also called the police but Chancers already left the building when they arrived.
The investor found out the next day that the police were looking for him. He then surrendered himself at Seoul’s Seongdong Police Station on the morning of May 13.
“I surrendered myself to the police station twice,” Chancers stressed, insisting: “I didn’t trespass on Do Kwon’s property, but according to Korean law, it’s illegal to just go there and try to talk. I didn’t know.”
Chancers told the news outlet that he expects to face a fine and a criminal record that could make his life difficult. He opined:
It’s so hard. I lost a lot of money and now I’m being investigated by the police. I originally served as a civil servant in Korea. But if I am convicted of this case, I may not be able to return to the civil service again.
“In Korean culture, the problem itself is not important but rather the fact that it caused a scandal,” he explained. “I even had to apologize publicly as a sinner. I had no idea this would be so big. It’s very sad.”
Do Kwon claims that he has been in Singapore since December last year. However, he dissolved Terraform Labs Korea and shut down the company’s Korean offices just days before LUNA and UST collapsed.
South Korean authorities have launched an emergency investigation into the implosion of the two coins. This week, the Korean police asked crypto exchanges to freeze the assets of the Luna Foundation Guard.
Do you think it was wrong for the investor to knock on Do Kwon’s door after he lost millions in the LUNA and UST crash? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Terra’s Collapse Has Triggered Regulatory Scrutiny Across Stablecoins￼
The recent Terra Luna crash has brought stablecoins under regulatory scrutiny
The collapse was stunning, a bank run that happened with lines of codes, not sidewalks crowded outside a branch. The crash was the kind of risk in the fast-growing cryptocurrency market that regulators have been warning about. It also brought renewed attention to the role of stablecoins in an increasingly unpredictable space. Stablecoins are supposed to offer a safe way for crypto users and investors to trade in and out of volatile cryptocurrencies. But the UST and luna collapse strengthens the view that the design of some stablecoins poses serious risks. While Terra investors were the ones most immediately hurt, its downfall could have both short-term and long-term ripple effects for crypto and beyond, especially as skeptical legislators and regulators survey the damage.
What is Terra (LUNA)?
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies — and it intends to roll out additional options.
Terra’s native token, LUNA, is used to stabilize the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
The reason behind the crash
Some stablecoins derive their value from being fully backed by reserves – if investors decide they ever want out, the stablecoin’s foundation should theoretically have enough cash on hand to repay all of them at once. UST, on the other hand, is an algorithmic stablecoin, which relies upon code, constant market activity, and sheer belief in order to keep its peg to the dollar. UST’s peg was also theoretically propped up by its algorithmic link to Terra’s base currency, Luna.
For the last six months, investors have been buying UST for one main reason: to profit off a borrowing and lending platform called Anchor, which offered a 20% yield to anyone who bought UST and lent it to the protocol. When this opportunity was announced, many critics immediately likened it to a Ponzi scheme, saying it would be mathematically impossible for Terra to give such a high return to all of its investors. Terra team members even acknowledged that this was the case—but likened the rate to marketing spending to raise awareness, in the same way, that Uber and Lyft offered severely discounted rides at the beginning of their existence.
This caused UST to depeg from the dollar. A bank run ensued, with investors who had earned interest via Anchor scrambling to get out the door before it was too late.
The UK to regulate stablecoin
In light of the mega crash, the British Treasury Department has announced plans for regulating stablecoins. The British Treasury secretary recently said, “Legislation to regulate stablecoins, which were used as a means of payment, will be part of the Financial Services and Markets Bill which was announced in the Queen’s Speech.”
US Treasury Secretary reacts to Terra wipeout
The US treasury secretary, Janet Yellen, also called for stablecoin’s regulation amid the recent TerraUSD de-pegging fiasco which triggered the Terra Luna wipe out. Although she stressed the fact that stablecoins are not yet a threat to financial stability, she insisted that new regulation is the need of the hour amid this speculative wave.
South Korea joins the regulatory bandwagon
Following the Terra LUNA crash amid the UST de-pegging fiasco, South Korea also has stated that it intends to look into some kind of stablecoin regulation. As per local media reports, South Korean financial regulators are undertaking an emergency investigation of cryptocurrencies to expedite the adoption of the “Digital Asset Basic Act.” The cryptocurrency went through a 3300 percent spike over the weekend after being nearly obliterated in the past week.
Currently, as per data from CoinMarketCap, the token is trading at US$0.0001673, 19.96 percent down in the last 24 hours.
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Terra Was Never Attacked! Stop Believing In Conspiracy Theories
Conspiracy theories around the fall of Terra will not help its case from being a weak investment
The collapse of the multi-millionaire cryptocurrency ecosystem Terra has sparked a wave of fear and uncertainty among investors, regarding the future prospects of cryptocurrencies. The degenerating value of Terra has led some of the major cryptocurrency exchanges in the world to de-list the crypto from their exchanges. Even before Terra’s fall, Bitcoin made headlines on a daily basis due to its declining value and repeated cycles of hampering investor profits. These incidents have led to, almost half of the sector’s entire value being lost, leading some of the most avid crypto fanatics in the world to choose more centralized and traditional forms of assets. The initial collapse of Terra sparked another wave of the sell-off season, knocking off 15-25% of the values of some of the most critical cryptocurrencies.
Several other crypto projects are also affected by Terra’s collapse. But this collapse not only led investors to lose their patience with their own investments but also led to the emergence of various conspiracy theories. Some of the latest ones claim that Terra was, intentionally, butchered by its competitors, and its fall was not caused by the technical and economic reasons that were being stated previously. Even though the South Korean Ministry is investigating the real reason behind the fall of Terra, it is quite true that nobody else is responsible for Terra’s fall, and these accusations are just conspiracy theories.
Well, such conspiracy theories should not be set aside, seeing Kwon as an individual who has had a reputation for belittling and attacking critics of his project. The Founder and his supporters are only interested to tag this major fall as just a mere speed bump in its continuous path towards growth and development. But an array of civil and criminal proceedings against the Founder, alleging him of a well-constituted fraud, has caused the crypto to fall even further.
Was there really an attack on the Terra ecosystem?
Indeed, the de-pegging of the algorithmic stablecoin TerraUSD was partly a result of an attack since its capital was deployed strategically and in large amounts to bring down the peg of the LUNA token. But the fact, that is going on around the crypto market like wildfire, is that Terra LUNA and UST were brought down by conspirators. This fact is slightly misleading and unfounded. Mostly, word has been around that a huge hedge fund company like BlackRock or Citadel was behind the attack. Critics blame TerraUSD’s algorithmic stablecoin structure and the coin’s fast growth without proper funds to back it. Investors and policymakers are so spooked by the nature of stablecoins that governments like the UK are discarding regulating algorithmic stablecoins and are choosing more critical stablecoins like Tether and USD Coin.
After days of its decline, Terra seemed to rise, allowing investors who bought the dip to gain profits. It seems like Terra’s new investors would stand with much more profits than the early investors, at this point. In a nutshell, Terra’s fall might seem like the end of the crypto dominance. The mainstream economic and financial markets are quite happy to invest in cryptocurrencies, but at this stage, with the growing number of conspiracy theories around the fall of the crypto market, even institutional investors are pulling out of the market. Even though, this conspiracy theory might not be true, it is quite real that Terra LUNA and UST have fallen and there is no turning around from that!
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