In a recent interview, Bloomberg Intelligence’s Senior Commodity Strategist Mike McGlone shared his thoughts on the collapse of LUNA and UST. Citadel Capital CEO Ken Griffin, on the other hand, thinks Terra’s (LUNA) collapse should be a wake-up call for regulators. Here are the details…
Mike McGlone: The market needs to be cleaned
McGlone said the drop in UST price is a warning to the rest of the crypto industry about the dangers of algorithmic stablecoins. As we reported as Kriptokoin.com, UST, which most investors thought was fixed to the value of 1 dollar at the beginning, experienced a price collapse that shook the crypto markets completely. McGlone described the collapse of the algorithmic stablecoin TerraUSD as “unfortunate” but expected given the bubble-like conditions of the crypto markets.
stated that the market needs to clean up over-expanded cryptoassets that have been “ballooning” over the past two years. McGlone flagged Shiba Inu (SHIB) and Dogecoin (DOGE) as “ridiculous” examples. He pointed out that clearing the crypto market of no-nonsense projects will result in crypto returning to “really laying the groundwork” that will ultimately transform technology and finance.
Ken Griffin: LUNA disaster should motivate regulators
On the other hand, Griffin said in a recent interview that the Terra (LUNA) “disaster” that saw it motivated officials to make the necessary regulation, especially for stablecoins. He said he should. “I think the Terra disaster should actually be a wake-up call for Washington to focus on careful regulation. The stablecoin in particular demands that it be regulated almost appropriately because of its name.”
hedge fund CEO says questions about market cap and volumes, reserves backing Tether (USDT) still surround the largest stablecoin. According to Griffin, evidence of reserves supporting stablecoins must be available and verifiable. “What’s behind Tether? It’s totally ridiculous that we don’t know. “If they’re going to show you that you have a dollar-worth of stablecoin, they better back it up with custody accounts that show you the assets that define that stability.” The CEO of Citadel Capital says stablecoin issuers should offer reserves periodically, just as exchange-traded funds (ETFs) must regularly release underlying assets.
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