Terra was Never Attacked! Stop Believing in Conspiracy Theories

Terra

Conspiracy theories around the fall of Terra will not help its case from being a weak investment

The collapse of the multi-millionaire cryptocurrency ecosystem Terra has sparked a wave of fear and uncertainty among investors, regarding the future prospects of cryptocurrencies. The degenerating value of Terra has led some of the major cryptocurrency exchanges in the world to de-list the crypto from their exchanges. Even before Terra’s fall, Bitcoin made headlines on a daily basis due to its declining value and repeated cycles of hampering investor profits. These incidents have led to, almost half of the sector’s entire value being lost, leading some of the most avid crypto fanatics in the world to choose more centralized and traditional forms of assets. The initial collapse of Terra sparked another wave of the sell-off season, knocking off 15-25% of the values of some of the most critical cryptocurrencies.

Several other crypto projects are also affected by Terra’s collapse. But this collapse not only led investors to lose their patience with their own investments but also led to the emergence of various conspiracy theories. Some of the latest ones claim that Terra was, intentionally, butchered by its competitors, and its fall was not caused by the technical and economic reasons that were being stated previously. Even though the South Korean Ministry is investigating the real reason behind the fall of Terra, it is quite true that nobody else is responsible for Terra’s fall, and these accusations are just conspiracy theories.

Well, such conspiracy theories should not be set aside, seeing Kwon as an individual who has had a reputation for belittling and attacking critics of his project. The Founder and his supporters are only interested to tag this major fall as just a mere speed bump in its continuous path towards growth and development. But an array of civil and criminal proceedings against the Founder, alleging him of a well-constituted fraud, has caused the crypto to fall even further.

Was there really an attack on the Terra ecosystem?

Indeed, the de-pegging of the algorithmic stablecoin TerraUSD was partly a result of an attack since its capital was deployed strategically and in large amounts to bring down the peg of the LUNA token. But the fact, that is going on around the crypto market like wildfire, is that Terra LUNA and UST were brought down by conspirators. This fact is slightly misleading and unfounded. Mostly, word has been around that a huge hedge fund company like BlackRock or Citadel was behind the attack. Critics blame TerraUSD’s algorithmic stablecoin structure and the coin’s fast growth without proper funds to back it. Investors and policymakers are so spooked by the nature of stablecoins that governments like the UK are discarding regulating algorithmic stablecoins and are choosing more critical stablecoins like Tether and USD Coin.

After days of its decline, Terra seemed to rise, allowing investors who bought the dip to gain profits. It seems like Terra’s new investors would stand with much more profits than the early investors, at this point. In a nutshell, Terra’s fall might seem like the end of the crypto dominance. The mainstream economic and financial markets are quite happy to invest in cryptocurrencies, but at this stage, with the growing number of conspiracy theories around the fall of the crypto market, even institutional investors are pulling out of the market. Even though, this conspiracy theory might not be true, it is quite real that Terra LUNA and UST have fallen and there is no turning around from that!

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