- Industry leaders are starting to deliver their takes on Terra’s (LUNA-USD) LUNA crypto
- LUNA saw a rapid decline last week, with prices falling from more than $80 per coin to under a penny
- Terra founder Do Kwon and his team have put up a revival plan for the network to vote on
The LUNA crypto crash was unprecedented, unforeseen and a very bad look for a faltering crypto industry. With one of the largest projects in the world plummeting into nothingness, crypto skeptics have been armed with plenty more reason to dismiss the entire industry.
Now, as Do Kwon and other Terra developers attempt to pick up the pieces of their network, industry bigwigs and government regulators are speaking out. These industry influencers are dishing out all sorts of takes on the Terra crash, leveraging the event for lessons in investing, arguing for greater regulation and speaking on whether the collapse will have a long-term effect on the industry.
LUNA Crypto Crash Gets Crypto Executives Talking
The LUNA crypto is spawning a lot of conversation among fellow blockchain developers. Unfortunately for Do Kwon and the Terra team, their comments aren’t the kindest.
Take Dogecoin (DOGE-USD) cofounder Billy Markus for example; he is slamming Kwon’s revival proposal for the network. Markus says any attempt to salvage the network will simply create new victims. He advises Kwon to move on.
Binance (BNB-USD) CEO Changpeng Zhao is speaking his mind, too. Recently, Zhao quipped that he is “poor again” after the collapse of the LUNA crypto. Moreover, his platform is now courting Terra developers, hoping to attract them to the BNB blockchain.
Polygon (MATIC-USD) founder Sandeep Nailwal is offering similar refuge for developers on his layer-2 network. Meanwhile, Ethereum (ETH-USD) founder Vitalik Buterin is taking aim at the TerraUSD (UST-USD) stablecoin instead of LUNA. Buterin calls algorithmic stablecoins like UST “propaganda.”
Much like Binance, crypto exchange Huobi Global is also taking a hit from the crash. Yet, cofounder Jun Du is not worried. Du says the volatility is short-term and that crypto will continue to grow. Galaxy Digital (OTCMKTS:BRPHF) CEO and known LUNA crypto bull Mike Novogratz may feel the sting for a long time, however. The crypto fanatic recently tattooed his love for LUNA on himself. Now, he says the tattoo will be a reminder that crypto investing “requires humility.”
Lawmakers Comment on Terra’s Demise
Of course, regulators and lawmakers can’t hold their tongues after an event like the LUNA collapse, either. This week, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler indirectly mentioned Terra in a budget meeting with Congress. The SEC’s newly proposed budget will help employ 50 employees for a new crypto regulation arm. At the meeting, Gensler referenced a crypto that “went from $50 billion of value to near zero just in the last three weeks,” likely referring to the coin.
At the same time, politicians like Senator Pat Toomey are talking about algorithmic stablecoins. A member of the banking and budget committees, Toomey is showing concern for the uncollateralized tech in the wake of the UST crash. U.S. Treasury Secretary Janet Yellen is also taking the opportunity to advocate for a faster rollout of crypto regulation.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.