Fautuaina e le Nofoa'i a le IMF e tetee atu i le lafoaia o le Crypto ina ua mavae Terra Crash

International Monetary Fund (IMF) Chair Kristalina Georgieva during the World Economic Forum’s annual meeting on Tuesday said the collapse of Terra’s algorithmic stablecoin UST should not make people abandon cryptocurrencies. Kristalina Georgieva believes the crypto market is important as it offers faster service, much lower costs, and more inclusion.

IMF’s Kristalina Georgieva Hails Crypto Despite Terra Collapse

During the World Economic Forum’s annual meeting in Davos, Kristalina Georgieva urges investors not to abandon the crypto market despite the collapse of Terra’s UST and LUNA as not all digital currencies are the same, reported Bloomberg.

“Ou te aioi atu ia te outou ia aua nei o ese mai le taua o lenei lalolagi. E ofoina mai ia i tatou uma le auaunaga televave, tau maualalo tele, ma le tele o mea e aofia ai, ae se'i vagana ua tatou tuueseese apu mai moli ma fa'i.

IMF’s Kristalina Georgieva thinks every investment asset comes with some level of associated risks, and so do cryptocurrencies. Therefore, stablecoins backed by cash and other assets are different from stablecoins supported by algorithms. Stablecoins are cryptocurrencies supposed to maintain a 1:1 peg with reserve assets like the US dollar.

le sofa of algorithmic stablecoin TerraUSD or UST caused massive liquidation across the crypto market. This should be a lesson for investors to avoid such risky assets that are less backed. Thus, investors should continue to invest in cryptocurrencies.

"O le itiiti ifo o loʻo i ai le lagolago, o le tele foi lea o lou nofo sauni e faʻalavelaveina le mea lea e pa i ou foliga."

Kristalina Georgieva also urges regulators around the world to protect investors through crypto regulations and education. Moreover, she warned against confusing crypto products with currencies. Anything not backed by a sovereign guarantee can be an asset class, but not a currency.

Crypto Maketi Tumau i lalo o le mamafa

The crypto market has been under pressure since the collapse of Terra’s UST and LUNA, decreasing investors’ trust in the market. Top cryptocurrencies Bitcoin and Ethereum are trading in a range for the last 2 weeks. Bitcoin and Ethereum struggle to maintain over $30,000 and $2000, respectively.

O Varinder o se Tusitala Fa'atekinisi ma Fa'atonu, Fa'atekonolosi Enthusiast, ma Analytical Thinker. O le fiafia i le Disruptive Technologies, na ia faʻasoaina lona malamalama e uiga i Blockchain, Cryptocurrencies, Artificial Intelligence, ma le Initaneti o Mea. O loʻo fesoʻotaʻi o ia ma le poloka poloka ma le cryptocurrency alamanuia mo se vaitaimi tele ma o loʻo aofia ai nei faʻamatalaga lata mai ma atinaʻe i le pisinisi crypto.

O mea na faʻaalia e mafai ona aofia ai le manatu totino o le tusitala ma e faʻatatau i tulaga maketi. Fai lau maketi suʻesuʻega ae e te leʻi faʻaalu i cryptocurrency. O le tusitala poʻo le lolomiga e le umiaina soʻo se tiute mo oe lava tupe leiloa.

Source: https://coingape.com/imf-chair-advises-against-ditching-crypto-after-terra-crash/