Fun

China Backed Publication: Terra LUNA Crash Vindicates Country’s Ban on Crypto-Related Activities

News Feed - 2022-05-17 05:05:47

China Backed Publication: Terra LUNA Crash Vindicates Country"s Ban on Crypto-Related Activities


An op-ed article published in the state-backed Chinese publication Economic Daily, has suggested that the recent crash of the Terra blockchain’s LUNA and the de-pegging of the UST stablecoin vindicate the Asian country’s decision to ban crypto-related activities. In the article, the author names the interest rate hikes by the U.S. Federal Reserve and the buying and selling of crypto assets by several investment giants as the causes of the recent market crash. Impact of Recent US Interest Rate Hike


An author writing for China’s state-backed publication, Economic Daily, has argued that the recent crash of Terra’s LUNA and the de-pegging of the UST stablecoin vindicates his country’s decision to block or prohibit virtual currency-related activities. The author, Li Hualin, also claimed that China’s “decisive” and “timely” action helped to “extinguish the ‘virtual fire’ of virtual currency speculation and put ‘protection locks’ on investors’ wallets.”


As reported by Bitcoin.com News, Terra blockchain’s native token LUNA’s troubles started after the network’s other project, the algorithmic stablecoin UST, lost its peg against the U.S. dollar. Initial efforts to rescue the stablecoin precipitated the native token’s plunge from a price of over $87 on May 4, 2022, to a current price of just under $0.0003.


While some crypto experts have placed the blame for the token’s crash on the actions of the project’s leader, Do Kwon, in the opinion piece, the Chinese author appears to attribute the token’s fall mainly to the raising of interest rates by the U.S. Federal Reserve. Explaining how the rate rise caused the token to plummet, the author wrote: Since the beginning of this year, the Federal Reserve has launched an interest rate hike cycle, and global liquidity has tightened. Especially in early May, the Federal Reserve raised interest rates by 50 basis points at a time, which had a negative impact on capital and market sentiment, and virtual currencies were the first to bear the brunt. Virtual Currency and the Chinese Law


Following the crash of the two Terra tokens, some within the crypto community are still trying to piece together what may have caused the spectacular collapse. However, others have already accused two firms, Blackrock and Citadel, of being behind LUNA’s woes. These allegations have been rejected by the firms.


The Chinese author, in the meantime, claims in the piece that the involvement of investment giants in crypto markets “can lead to violent fluctuations in currency values, triggering a large number of sell-offs.”




Hualin also reiterated that virtual currency transactions are not protected by Chinese law. These comments appear to contradict the recent Shanghai High People’s Court judgment affirming bitcoin to be a virtual asset protected by Chinese law.


The author ends the article by urging investors to “remain rational, promptly eliminate the greed of bottom-hunting and get rich overnight, and stay away from related trading speculations, otherwise it is very likely that ‘currency will go to the fortune."” Tags in this story ban, Bitcoin, Blackrock, China, crypto ban, Crypto markets, do kwon, LUNA, Shanghai High People’s Court, Terra Blockchain, UST, Virtual Currency


What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First FEATURED | 6 hours ago Report: Central African Banking Regulator Says Crypto Ban Still Effective FEATURED | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFinder’s Poll Conducted Weeks Before Terra’s Fallout Predicted LUNA Would Tap $143 This Year Next articleGrayscale Launches European ETF While Urging SEC to Approve GBTC Conversion Into Spot Bitcoin ETF Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Binance exec arrested in Kenya, could face extradition to Nigeria: Report
Turner Wright8 hours agoBinance exec arrested in Kenya, could face extradition to Nigeria: ReportKenya’s police force reportedly arrested Nadeem Anjarwalla and may send the Binance executive to Nigeria to face charges
Liquid Craft to Launch 1500 Liquor Backed NFTs on ETH and BSC 23rd Nov
Liquid Craft to Launch 1500 Liquor Backed NFTs on ETH and BSC 23rd Nov press release PRESS RELEASE. Liquid Craft – is bringing a new concept to the NFT space by using collect
Bahamas Regulator Appoints ‘Big Four’ Auditor PWC as Joint Provisional FTX Liquidator
Bahamas Regulator Appoints "Big Four" Auditor PWC as Joint Provisional FTX Liquidator On Nov. 14, 2022, the Securities Commission of the Bahamas (SCB) published a press release tha
Finder’s Experts Predict Bitcoin to Peak at $29K in 2023, But Forecast a Low of $13K 
Finder’s Experts Predict Bitcoin to Peak at $29K in 2023, But Forecast a Low of $13K  The price of bitcoin is set to rise in 2023, but crypto and fintech experts chosen by the p
Pundit Gives Dogecoin Price 30-40% Chance Of Crash To $0.165 As RSI Enters Oversold Levels
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Biden Accuses Twitter of Spewing Lies Across the World as Elon Musk Rolls Out Twitter Blue Subscription
Biden Accuses Twitter of Spewing Lies Across the World as Elon Musk Rolls Out Twitter Blue Subscription Elon Musk has started rolling out a $7.99-a-month Twitter Blue subscription
XRP Whales Keep Loading Up Their Bags – 100 Million XRP Accumulation In 48 Hours
Este artículo también está disponible en español. XRP is currently trading around the $3.10 level after a weekend marked by significant volatility and a lackluster market
Southeast Asia’s Largest Bank DBS Launches Full-Service Bitcoin Exchange
Southeast Asia"s Largest Bank DBS Launches Full-Service Bitcoin Exchange DBS, the largest bank in Southeast Asia, has officially announced the launch of several
Polygon Raises $450 Million From Sequoia Capital India, Softbank, Shark Tank’s Kevin O’leary
Polygon Raises $450 Million From Sequoia Capital India, Softbank, Shark Tank"s Kevin O’leary The blockchain project Polygon announced it has raised $450 million on Monday in a fu
Brayden Lindrea47 minutes agoBitcoin needs Ethereum VM to reach its full potential — Web3 execBotanix Labs founder Willem Schroé argues a “huge amount of value” from real-world assets will be captured on Bitcoin,
S2F Hopium: Report and Twitter Critics Find Flaws With Bitcoin’s Stock-to-Flow Ratio
S2F Hopium: Report and Twitter Critics Find Flaws With Bitcoin"s Stock-to-Flow RatioIn mid-April, news.Bitcoin.com researched the popular stock-to-flow (S2F), which shows the price
Solana Ventures Launches $100 Million Fund Focused on Web3 Projects in South Korea
Solana Ventures Launches $100 Million Fund Focused on Web3 Projects in South Korea Solana Ventures has revealed the launch of a $100 million fund dedicated to Web3 startups in Sout