Op-ed: How Do Kwon, Terra could have set crypto back 10 years

The fallout from the collapse of Terra could be even more significant than we first thought. I recently wrote a piece claiming that the crypto industry is under attack from multiple angles, and witnessing the current sentiment within the community, I fear it’s only just begun.

Crypto as a Ponzi scheme

Crypto has been called a Ponzi scheme and a scam by many no-coiners over the years. While there have certainly been examples, the crypto industry has started to receive actual institutional adoption over the past few years.

Indeed, my argument in my last op-ed was based on the fact that the crypto industry has legitimized itself as an existential threat to the current financial system. This threat has central banks, the WEF, the IMF, and the rest of the traditional finance industry concerned that they may lose their hold on the global economy.

I accept that a complete departure from the traditional financial system could end in anarchy, but I also believe that the current system is broken and needs to be rebuilt. In doing this, many of the world’s wealthiest companies and individuals would have to lose out on a fairer distribution of wealth and financial freedom among the 99%.

Fueling the fire against crypto

However, the coming crypto winter could be the last opportunity for the old guard to make a play for control over digital assets such as cryptocurrencies and NFTs. The catastrophic events of the Terra meltdown directly wiped out over $30 billion from the combined market cap of crypto.

The additional fear, uncertainty, and doubt (FUD) created by the collapse caused a further $160 billion to be lost as the broader market softened. Concerned investors have begun asking advisors how to manage risk in such scenarios.

BitewiseInvest CEO Hunter Horsley said advisors’ biggest concerns right now are:

– Regulation
– LUNA
– Coinbase bankruptcy scenario
– Use cases
– Power consumption
–…