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SBF: “The LUNA UST Mechanism Wasn’t Misrepresented– It Was Very Transparent”

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SBF:

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FTX CEO Sam Bankman-Fried a.k.a SBF stood boldly behind Terra’s co-founder Do Kwon and has actually shared his views on among the worst fiascos in the crypto market. Supporting the beleaguered creator, SBF looked for to offer his piece of mind in among the most talked-about problems- the LUNA/UST system which has actually come under extreme criticism.

In his Twitter thread, SBF stated the LUNA/UST was extremely transparent and not misshaped as extensively seen. “Do Kwon certainly waited it, ethically and in regards to press, long after he ought to have withdrawed,” the tweet read.

Kwon didn’t claim that UST was backed 1:1 by USD. He declared, properly, that it was backed by a lot of unpredictable properties. It was really openly clear that those possessions may decrease, and the rest followed. Once again– I do not wish to excuse the habits. It’s various.

Kwon who is presently dealing with installing criticism over his stablecoin mess was on one event identified crypto’s Elizabeth Holmes drawing resemblances to her defrauding financiers in the Infamous Theranos Scandal that rocked the United States health care market.

According to SBF, Luna was driven by mass interest, enjoyment, and excessive marketing and meme tricks that made individuals think in something which was going to fail according to the openly offered info.

” That marketing was most likely bad. It wasn’t the very same type of bad as Theranos,” he stated.

SBF: “Most Bad Investments Aren’t Ponzi Schemes”

The FTX creator attempted to eliminate misconceptions about financial investments that yield losses by stating “most bad financial investments aren’t Ponzi plans. Some are scams, some are bad luck, and some are someplace in between.”

He reasoned this by mentioning circumstances of financial investments that have actually lost more than 50% of their worth in 2022, consisting of Cathie Wood’s ARKK Investment, AMC Entertainment, Netflix, and LUNA.

One can’t assist however compare the plain contrast to Binance Changpeng Zhao’s response who knocked UST as “one over-leveraged ‘steady’ coin” and slammed the style defect of its community.

Following the disaster, the world’s biggest cryptocurrency exchange reacted by stopping the trading of Terraform Labs’ Terra [Luna] and TerraUSD [UST] tokens on its platform forever.

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