The crypto market has been in a consistent bearish mode for the past few months. Lots of investors have lost a significant amount of their holdings due to this bearish market. We’ve seen BTC plunging to its lowest point since 2020. This is after the most recent highlight of this bearish market, LUNA. LUNA fell from Its all-time high of US$119 and at the time of this writing, it’s at US$0.0001346. This is regarded and termed as one of the greatest liquidations of all time.
According to Coinmarketcap, the entire crypto market has a market capitalization of $1.2 trillion, less than half of the $2.9 trillion it was worth in November 2021. This massive dump in the crypto market which LUNA’s dump contributed to has generated a lot of mixed reactions in the cryptoverse. Lots of crypto giants have lost significant amounts to the LUNA crash. It was reported that Binance’s position fell from $1.6 Billion to about $2,200 as a result of the LUNA crash. Some of these crypto giants have given their takes on the market situation. Some of these will be discussed.
Billy Markus the creator of the meme coin doge stated the fact that he gets “triggered” when he reads about the crash. He took to Twitter to make his position known. He tweeted that the crash is “quite literally the stupidest thing I have ever seen in my life,”. He went ahead in his tweet to describe the creators of Terra and Luna as “degenerate gamblers.”
Commenting on the general outlook of the crypto market after the crash, he tweeted that the crash is an eye-opener that the crypto market can tank in an incredibly short time where one can lose all they have to the volatility of the crypto market. He further explains that the crash is liquidating the crypto market.
Bill Ackman, a notable American investor and advisor, has also taken to Twitter to react to the LUNA crash. He described LUNA as “ a crypto version of a pyramid scheme.” LUNA and TERRA were both steered to maintain stability by balancing out supply and demand but instead of maintaining stability, crashed and took the crypto market with it.
He further stated via his tweets that schemes like LUNA pose a threat to the whole ecosystem. The crash has crippled the crypto market and the emergence of projects similar to LUNA will further cripple the crypto ecosystem. Hence in the last thread, he suggested that the crypto industry should self-regulate away other crypto projects with no underlying business models before crippling regulation shuts down the good and the bad. He established the fact that just like LUNA and TERRA, hyping tokens that are not supported by businesses that create value will destroy the entire crypto industry just as LUNA has destroyed the crypto market.
Binance CEO Changpeng Zhao popularly called CZ has also expressed his displeasure and sadness about the crash. The first step Binance took was to suspend LUNA and UST trading and in his tweet, he explained that the developers of LUNA have mined an exponential amount of new LUNA tokens which most users are unaware of and this will lead to another massive price crash as soon as deposits are allowed. And this massive price crash will lead to a bearish move in the general market. The damning effect the crash is having on the crypto market made CZ take the decision.
CZ didn’t hold back as he called on the developers of LUNA for their docile approach to try and salvage what’s left. In his tweet, he stated that the team refused to burn extra mined LUNA and recover the UST peg as advised. He further added that the team is not ready to take responsibility and be accountable for what happened.
Ryan Wyatt, CEO of Polygon studios in his tweet stated that the crash has broad implications. He stated that It’s a lesson in hubris and arrogance on the path of the developers both which were on display before the crash, time for empathy for those who lost a great deal because of their trust and that it will have lasting consequences. The lasting consequence mentioned here is the crashed crypto market as a result of the LUNA crash. And according to him, it’s going to be a long-lasting one. He further confirmed this when he tweeted again that there’s the wiping out of a $100B market cap to $80m in 72 hours (LUNA).
He was less direct while addressing the LUNA crash. This is because of the upcoming anticipated collaboration between LUNA and Polygon. This is seen in his tweet where he tweeted that the team is working closely with a variety of Terra projects to help them migrate over swiftly to the Polygon network.
There is no doubt that the recent LUNA crash has plunged the crypto market and that investors are in a full-blown bearish season.