Terra’s Lawyers Leave As ‘Pyramid Scheme’ Unravels, Twitter Full Of Crypto Bots And Bitcoin Is Stable?

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TerraUSD and Luna’s demise cause a $40 billion crash and left many without savings. Do Kwon, the South Korean entrepreneur, apparently hyped the Luna and TerraUSD crypto coins to such a point that even the venture capitalist firms that were investing in the beginning decided to cash out before the coins both sank.

Speaking to the New York Times yesterday, Martin Baumann of Hong Kong-based venture firm CMCC Global, admitted that he cashed out in April already, at about $100 per coin.

We had gotten increasing concerns, both from tech side as well as regulatory side.

Luna appreciated by attracting more followers and by limiting the supply of tokens through a vesting schedule. It collapsed once the supply of sellers of Luna overwhelmed the buyers. This story explains it well: https://t.co/mgqzecXAKS

— Bill Ackman (@BillAckman) May 17, 2022

Even billionaire investor Bill Ackman called the Terra algorithm nothing but the ‘crypto version of a pyramid scheme’.

Of course at this point, with several bankrupted crypto traders starting court cases against the Terra team, it would be good to have a team of lawyers around you. Only problem is that the legal team of Terraform Labs has quit en masse. Looking at their LinkedIn profiles, it shows that Marc Goldich, Lawrence Florio, and Noah Axler all worked with the company only until May 2022.

The vast majority of team members remain steadfastly committed to carrying out the project’s mission.

A representative from Terraform Labs answered when asked about the inhouse counsel team’s departure. .

Not looking good then.

Twitter full of crypto bots

Tesla CEO Elon Musk’s $44 billion bid for Twitter is still in doubt. Musk claims that the SEC filing of the company which mentioned that only 5% of all users are bots is false. Commentators believe the number to be far higher.

If 95% of #crypto twitter is bots, it is only #tezos and bots. Look at the comments in any crypto related thread @elonmusk

— 🕶️Tezoski.tez🕶️ | TezosJobs.xyz (@tezoski) May 18, 2022

Explaining the problem in Wired this week, Chris Bail, a professor of sociology at Duke University who studies social media, commented:

If you simply mention Elon Musk on Twitter, you immediately get engaged with a ton of crypto bots.

Bitcoin is … stable?

According to the latest data from CoinMarketCap, Bitcoin has moved some 1% in the past week (at the time of writing this article Friday morning). Knowing that US stock markets have known days of 4% falls in the same period, that looks quite stable to me. Of course, the world’s biggest cryptocurrency only trades at around $30k anymore, but you gotta start seeing a silver lining somewhere.