It seems that the LUNA event will continue to be talked about for a long time. Also, looking back these days, some warnings are justified. It’s almost like Gabriel Garcia Marquez’s “Red Monday” is happening. It turns out that the founder of MakerDAO, a decentralized organization that also has its own algorithmic stablecoin, warned that UST would go to zero because it’s a solid Ponzi.
LUNA crash is still on the agenda
TerraForm Labs ecosystem tokens, including TerraUSD (UST) and LUNA, have experienced one of the most devastating drops since the inception of the cryptocurrency market. it has become a phenomenon that everyone knows and talks about.
Kriptokoin.com , as you can see in the news, LUNA followed its stablecoin and almost zeroed out after the UST lost its peg against the US dollar. This collapse greatly affected the investors of the tokens. While many cryptocurrency experts warned of the imminent collapse of Terra tokens, many investors ignored these warnings as they paid the price.
MakerDAO founder, sounded UST and LUNA alarm in January
Rune Christensen, CEO and founder of MakerDAO, January 4 In 2022, he warned investors that the UST stablecoin as well as Magic Internet Money (MIM) are solid ponzis (fraud scheme).
According to Christensen, despite people making huge profits from their investments in UST and MIM, digital currencies did not have the right flexibility integrated into them. He added that the lack of flexibility in the tokens will expose the pair to unusual volatility that could push the price of the assets to zero.
Look, UST and MIM are solid ponzis and I respect that. You can make good money off them for sure. But they are not built for resilience and they are going to 0 once the market turns for real
Now stop trying to scam users looking for actual stability into being ur exit liquidity
— Rune (@RuneKek) January 4, 2022
As expected after Christensen’s post , TerraForm Labs co-founder and CEO, Do Kwon, came to defend his project UST and replied with a stern and sarcastic tone, “I thought you were already dead”:
https:/ /twitter.com/stablekwon/status/1478184831544864772
Meanwhile, both MIM and UST have a common feature that offers an opportunity for the crypto community to generate passive income by investing in the project. let me specify.
Kevin Zhou warns UST investors again
Kevin Zhou of Galois Capital, who last week warned people to avoid investing in Terra, Terra’s Anchor Yield program states that the UST collapsed due to the high return on investment paid to its investors.
Zhou says that since investors earned about 20% by investing their funds in Anchor Protocol, the Terra team was unable to pay interest due to more people investing in the project. Zhou, who also describes the Terra system as Ponzi, notes that investors are siphoned off by the Terra team.
