U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler has no hesitation in claiming that more cryptocurrencies will suffer the same fate as Terra (LUNA) and TerraUSD (UST).
Coincidentally his opinion is linked to the crypto market which has been in turmoil since last week, inviting concern among amateur investors.
Since the announcement of the interest rate hike on May 5, the movement of Bitcoin (BTC) and the entire crypto market has worsened.
Based on the current value per BTC unit, $ 30,194.48, this crypto king has declined over 24% over the past two weeks and over 56% from an all -time record high (ATH), $ 68,789.63 on November 10, 2021.
But LUNA was even worse with a 100% depreciation from $ 88 (May 5) to a value of $ 0.000144089 at the time this article was written.
UST, which is believed to be the cause of LUNA's collapse, has lost its value against the US dollar, trading at $ 0.09.
Because of this sudden incident, Gensler advised investors to be prepared for the decline in the price of coins and other crypto tokens to zero: "More people will lose."
This also shows the SEC is moving forward with a stricter monitoring plan on crypto platforms, and ensuring all parties offering crypto trading are registered with them.
Only in this way Gensler is confident investors will be safer from any risk.
No wonder why the SEC is at the same time ‘looking for’ a new staff that includes a line of lawyers, fraud analysts, monitors, and trial lawyers to further strengthen the crypto unit at the agency.
At the same time, the SEC’s crypto unit successfully resolved more than 80 cases related to cryptocurrency fraud activities that resulted in investor losses of up to $ 2 billion.
