IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA – Following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd, the managing director of the International Monetary Fund (IMF) reportedly stated that investors should not fully abandon crypto (UST).
At the World Economic Forum’s annual meeting in Davos on Monday, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), discussed cryptocurrency.
After the recent collapse of algorithmic stablecoin terrausd (UST) and cryptocurrency terra (LUNA), she urged people not to fully abandon crypto, according to Bloomberg.
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The IMF head emphasized that it is the role of authorities throughout the world to put in place safeguards and fully educate investors on the risks associated with crypto assets.
She emphasized that there are many various forms of crypto assets with differing risk levels, emphasizing the distinction between cash-backed stablecoins and algorithmic stablecoins like LUNA.
IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA – Georgieva expressed her opinion as follows:
“The less there is backing it, the more you should be prepared to take the risk of this thing blowing up in your face.”
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During a session organized by CNBC in Davos on Monday, Georgieva spoke on stablecoins. “When it comes to stablecoins, here is where the main mess occurred. “A stablecoin is stable if it is backed by assets one to one,” she explained.
It’s a pyramid when it’s not backed by assets yet promises a 20% return on investment. What happens to pyramids after they are built? They finally disintegrate.