{"id":61642,"date":"2022-05-18T16:26:00","date_gmt":"2022-05-18T13:26:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61642"},"modified":"2025-09-05T13:25:30","modified_gmt":"2025-09-05T10:25:30","slug":"bill-ackman-calls-terra-a-crypto-pyramid","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bill-ackman-calls-terra-a-crypto-pyramid\/","title":{"rendered":"Bill Ackman calls Terra a crypto pyramid"},"content":{"rendered":"<p>The Terra collapse resembles the fall of a financial pyramid, said Bill Ackman, the CEO and founder of Pershing Square Capital Management.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">When I read about the \u2018algorithm\u2019 of <a href=\"https:\/\/twitter.com\/terra_money?ref_src=twsrc%5Etfw\">@terra_money<\/a> it sounds just like a crypto version of a pyramid scheme. Investors were promised 20% returns backed by a token whose value is driven only by demand from new investors in the token. There is no fundamental underlying business.<\/p>\n<p>\u2014 Bill Ackman (@BillAckman) <a href=\"https:\/\/twitter.com\/BillAckman\/status\/1526398201003130880?ref_src=twsrc%5Etfw\">May 17, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>For me, the &#8216;algorithm&#8217; of Terra<\/em> is a crypto version of a financial pyramid. There is no business. Investors were promised a 20% return. It is provided by a token whose value is sustained by demand from new investors<\/p>\n<\/blockquote>\n<p>Ackman pointed to attractive terms in Anchor. The largest protocol of the Terra ecosystem until recently <a href=\"https:\/\/forklog.io\/ctejblkoin-ust-kratkovremenno-utratil-privyazku-k-dollaru-ssha-na-fone-ottoka-aktivov-iz-anchor\/\">to earn 20%<\/a> on deposits in UST. The reduction of the rate to 17.87% led <a href=\"https:\/\/forklog.io\/ctejblkoin-ust-kratkovremenno-utratil-privyazku-k-dollaru-ssha-na-fone-ottoka-aktivov-iz-anchor\/\">to the loss of the stablecoin peg<\/a> to the US dollar and the subsequent <a href=\"https:\/\/forklog.io\/luna-foundation-guard-opustoshila-rezervnyj-fond-na-3-mlrd-dlya-spaseniya-ust\/\">collapse of the ecosystem<\/a>.<\/p>\n<p>The price growth of the native token was supported by demand from new users and by supply constraints due to vesting, the billionaire added.<\/p>\n<p>In the view of the CEO of Pershing Square Capital Management, the scheme and the hype allowed Terra to reach a scale that began to threaten the entire cryptocurrency market.<\/p>\n<p>Ackman proposed self-regulation in the segment so that such projects without viable business models do not destroy both the bad and the good in the industry. The blockchain has enormous potential, he concluded.<\/p>\n<p>Forbes <a href=\"https:\/\/forklog.io\/v-forbes-nazvali-krah-ust-i-luna-pyatoj-perezagruzkoj-kriptorynka\/\">called<\/a> the collapse of UST and LUNA the &#8216;fifth reboot&#8217; of the crypto market.<\/p>\n<p>According to Goldman Sachs, <a href=\"https:\/\/forklog.io\/v-goldman-sachs-nazvali-uslovie-dlya-uspeha-algoritmicheskih-stejblkoinov\/\">will come<\/a> only if they are widely used in payment transactions.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\"https:\/\/t.me\/forklogfeed\" target=\"_blank\" rel=\"nofollow noopener\">ForkLog Feed<\/a> \u2014 the full news feed, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">ForkLog<\/a> \u2014 the most important news, infographics and opinions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Terra collapse resembles the collapse of a financial pyramid, said Bill Ackman, CEO and founder of Pershing Square Capital Management.<\/p>\n","protected":false},"author":1,"featured_media":61643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1138,1163,852],"class_list":["post-61642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-opinions","tag-ponzi-schemes","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61642"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61642\/revisions"}],"predecessor-version":[{"id":61644,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61642\/revisions\/61644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61643"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}