The unprecedented fall of Terra (LUNA) and the algorithmic stable coin UST sent shockwaves across the whole crypto market
The crash has given more voice to calls for regulation and investor protection
The past few weeks have been turbulent for investors in the crypto space, with market movements creating margins never seen before. Investors have had to cut losses, not to mention being caught in fixes, unable to predict how the cryptocurrencies they track might perform upon trading. The heavy downturn has opened up discussions on the utility and market performance among industry experts.
Bitcoin may hit a bottom of $12,000 during this current cycle
In an interview with Stanberry Research, Gareth Soloway, the President of InTheMoneyStocks.com, dismissed the popular belief that Bitcoin flourishes during periods of high inflation. Setting a high extreme of $20,000 and a low extreme of $12,000, Soloway also projected that the Bitcoin markets might hit these figures – history considered.
He further noted that the Bitcoin conference hosted by the El Salvadoran President Nayib Bukele on Monday couldn’t have come at a worse time.
Do Kwon could be summoned to South Korea
Elsewhere, Terraform Labs CEO Do Kwon could be asked to appear before South Korean authorities following the cataclysmic collapse of Terra assets. The authorities seek to understand the cause of the crash so as to formulate policies that would protect investors in the future, the local news site reporting the story detailed.
Calls for strict regulation of the digital assets space
The crash of Terra’s native token LUNA this month was catastrophic, with its impact being felt by other ecosystems. Its price decline heightened fear and tension among investors and traders alike as fellow altcoins like Avalanche suffered a downturn.
Investor behavior has since been influenced and there are concerns that the resultant domino effect might spiral out of control. This, Soloway claims, necessitates regulation to be put in place to improve other things like security from cyber intrusion.
“I hope that good things can arise from this, meaning that you do need governments to come in and have some regulation to prevent things like this happening again. I think that could be a long term positive.“