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The managing director of the International Monetary Fund (IMF) reportedly said that investors should not completely pull out of crypto after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

IMF Chief Has a Message for Crypto Investors After the Collapse of LUNA, UST

Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), discussed cryptocurrency at the World Economic Forum’s annual meeting in Davos Monday.

She urged people not to completely shun crypto after the recent collapse of algorithmic stablecoin terrausd (UST) and cryptocurrency terra (LUNA), Bloomberg reported. The IMF managing director was quoted as saying:

I would beg you not to pull out of the importance of this world … It offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas.

The IMF chief stressed that it is the responsibility of regulators worldwide to put up protective measures and adequately educate investors on the risks of crypto assets.

She pointed out that there are many different types of crypto assets with varying risk levels, emphasizing that there’s a big difference between stablecoins that are backed by cash and algorithmic stablecoins, like LUNA.

Georgieva opined:

The less there is backing it, the more you should be prepared to take the risk of this thing blowing up in your face.

IMF Chief Says Stablecoins Not Backed by Assets Will Eventually Fall to Pieces

Georgieva further discussed stablecoins during a panel moderated by CNBC in Davos Monday. “When we look at stablecoins, this is the area where the big mess happened. If a stablecoin is backed with assets, one to one, it is stable,” she said, elaborating:

When it is not backed with assets, but it is promised to deliver 20% return, it’s a pyramid … What happens to pyramids? … They eventually fall to pieces.

What do you think about the comments by IMF Chief Kristalina Georgieva Let us know in the comments section below.

2 thoughts on “IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA, UST

  1. The Algorand Foundation, whose mission is to grow the ecosystem of the carbon-negative Layer 1 blockchain invented by Turing Award winner and MIT professor Silvio Micali, and MakerX, a firm that specializes in web3 & digital product development, today announced the general availability of a first-of-its-kind automated platform that will enable Terra users to move their projects to Algorand. The Algorand Foundation also announced that it is committing 1 million ALGO to a fund that will start with enabling Terra users to make the migration.

    “We're all working for the same dream of an inclusive, decentralized, and borderless global economy. And when you see people who are chasing that dream get hit hard the way they did, you can't just sit around,” said Algorand Foundation CEO Staci Warden. “When people from the Terra/Luna community started reaching out to us, we immediately got busy (very!) getting this support up and running.”

    With the Algorand Migration Service, Terra creators will be able to migrate their NFT projects to Algorand, receive personalized support from founders of some of the most well-known projects and platforms on Algorand, and enable their communities to easily receive their newly migrated NFTs at zero cost with all fees covered by Algorand. At the time of launch, Algorand was the first to deploy a migration service leveraging automation to allow seamless project migration.

    Funding will be allocated on a first-come, first-serve basis, factoring in size of the project community while active on Terra. Even after the special migration fund has been depleted, users will still be able to apply for funding via the standard Algorand grant program.

    This is just the beginning. The Foundation and MakerX plan to expand migration capability to enable users on other blockchains to make the switch.

    Poppin Puffins is a NFT creator club that has already moved onto Algorand. The club donates 2.5% of its profits to charities committed to natural seabird habitat conservation. “It just makes sense. Our values could not be more aligned,” the club stated. “We're relieved we have a place to nest – where our people can keep making cool stuff for a good cause.”

    To develop the tool, Algorand partnered with MakerX, which developed key project content, created a project support channel, built the migration tool, and drove the allocation of funding to migrated projects. It is a long-standing partnership; MakerX is an Algorand Preferred Partner and the creator of the Data History Museum on Algorand. The combined team developed the services platform over two weeks, responding rapidly to the need for supporting Terra projects seeking a new home.

    “When one of our engineers saw the challenges faced by projects in the Terra ecosystem, they jumped into action, creating an open-source tool to assist projects seeking to migrate.” said Matt Davies, MakerX CEO. “MakerX was thrilled to work with the Algorand community in automating this service so that Terra projects could easily migrate to a new home, leveraging our technology investments over the past year in Algorand to get the migration service live in under two weeks.”

    For more information and to access the migration service or application for funding, please visit the Algorand Migration portal at https://migrate.algorand.foundation.

  2. I will try to keep this brief because I think I will make sense to everyone who has ever purchased crypto. Prior to discovering this strategy, I just bought x amount of ETH every payday. Super simple and mindless. But then I’d watch the charts and inevitably, the price dropped over the next 24 hours. So over the past few weeks, I’ve decided to trick the system.

    This is how we can all get rich. Whenever the time comes for you to purchase whatever you want to purchase, only spend 20% of the what you are planning to. Then, wait 20-30 hours and watch the price drop and drop and drop. And then, when it has dropped enough for your liking, BOOM you spend the remaining 80% of what you were originally going to. It’s flawless and the crypto markets have been furious at me ever since I started doing this.

    Congrats on the riches everyone. See you at the top.

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