Bill Akman called Terra a cryptopyramid
Terra collapse is similar to the collapse of the financial pyramid, said CEO and founder of Pershing Square Capital Management Billioner Bill Akman.
When I Read About the ‘Algorithm’ Of @terra_money it Sound Like a Crypto Version of a Pyramid Scheme. Investors Were Promized 20% Returns Backed by A token Whose Value IS Driven By Demand from New Investors in the Token. There is no fundamental underling business.
– Bill Ackman (@billackman) May 17, 2022
“For me” Algorithm “Terra – Crypt version of the financial pyramid. There is no business. Investors promised a profitability of 20%. It is provided by a Sino Global Capital token, the cost of which is maintained due to the demand of new investors “, He wrote.
Akman referred to attractive conditions in Anchor. The largest protocol of the Terra ecosystem, until recently, allowed to obtain a revenue of 20% for deposits in UST. A decrease in the rate to 17.87% led to the loss of stabricin binding to the US dollar and the subsequent collapse of the ecosystem.
The increase in the price of Native Token was maintained by the demand from new users and the restriction of the offer at the expense of the sank, the billionaire added.
According to CEO Pershing Square Capital Management, the work scheme and hype allowed Terra to achieve such scale that began to threaten the entire cryptocurrency market.
Akman proposed introducing self-regulation in the segment so that such projects without working business models would not destroy both bad and good in the industry. The blockchain has “huge potential”, he concluded.
Recall that in Forbes they called the collapse of UST and LUNA “fifth rebooting” crypto.
According to Goldman Sachs, the popularization of algorithmic stablecoins will occur only if they are widely used in payment transactions.
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