Terra Like A Crypto "Pyramid Scheme," Says Activist Investor Bill Ackman
Activist investor Bill Ackman weighed in on the recent Terra crisis, calling the protocol a crypto version of a pyramid scheme. Ackmans comments come in wake of the Terra blockchain losing most of its value in the span of a few days, as the de-pegging of its UST stablecoin cause a massive bank run. The fact that UST offered a 20% return, with no fundamental business backing its value, is the most telltale sign of a pyramid scheme, Ackman said late-Tuesday. The protocol collapsed once LUNA suppliers surpassed buyers. Ackman is the founder of Pershing Square Capital, a hedge fund. His boisterous and highly involved investment style has earned him the tag of an “activist investor.” Ackman praises blockchain, calls for more self-regulation In a Twitter thread, the Pershing Square founder praised blockchain as being a “brilliant technology,” but added that projects like Terra gave the space a bad name. To Ackman, the digitization of LUNA and the hype around the crypto market were the key reasons behind the platforms popularity. He called for more self-regulation by the crypto industry, especially towards businesses that have no underlying businesses backing their tokens. The crypto industry should self-regulate away other crypto projects with no underlying business models before crippling