Bitcoin millionaire Sam Bankman-Fried recently said on Twitter that failed altcoin project Terra isn’t as dire as the notorious biotech scam Theranos.
Terra isn’t as bad as the Theranos scam
According to Sam Bankman-Fried, FTX CEO dismissed Terra’s claim that it was a Ponzi scheme and the crash was a result of inadequate marketing. He says it’s a case of “massive enthusiasm” and “excitement.” Elizabeth Holmes’ blood testing initiative, Theranos, was the launch of a groundbreaking device capable of performing a variety of tests on a single drop of blood. In January, Holmes was found guilty and convicted of defrauding investors. His lawyers were unable to convince the court that Holmes truly believed in technology.
8) Luna was a case of mass enthusiasm, excitement, and–frankly–marketing and memes–driving people to believe in something which was going to falter according to publicly available information.
That marketing was probably bad.
But it wasn't the *same* type of bad as Theranos.
— SBF (@SBF_FTX) May 14, 2022
Kryptokoin.com as LUNA , TerraUSD (USD) fell almost to zero after losing $1 peg. UST and LUNA are supposed to work together. However, given the difficulty of UST getting its stabilizer back, the idea only served to lower the price of the LUNA. The controversial co-founder of the project, Do Kwon, has proposed a redistribution of tokens to revitalize the Blockchain network. He now hopes to start from scratch via a hard fork of Terra. The total number of tokens on the network will be limited to one billion.
The compensation offer for the altcoin community has already received a lot of backlash
According to Binance CEO Changpeng Zhao, it’s a dream to expect the network to have any value through a hard fork. a full thought”. Prior to Terra’s collapse, Kwon had repeatedly displayed aggressive behavior on Twitter and had a harsh reaction to those who criticized Terra. Thus, it garnered little sympathy among the crypto community.
Now Terra founder Kwon needs to prove and convince that he did not defraud investors, given the very high probability of facing many legal issues. They’ll have to make a convincing argument that he didn’t try to fool his lawyers with his statements about Terra, and that he reportedly actually believed in the project despite having connections.
Meanwhile, Dogecoin founder Billy Markus said that Kwon should stop bringing more problems to the cryptocurrency market and leave the industry forever.
