Matt Hougan, chief investment officer of Bitwise Asset Management, discussed the cons of Terra (LUNA).
In an interview with CNBC’s Taylor Locke, Hougan touched on the risk factors associated with Terra. According to him, Terra may be affected by some regulatory issues. Addressing the network’s stablecoin UST first, Hougan said that UST should maintain a 1:1 ratio, as expressed in many discussions about stablecoins. He also recalled that Terra’s company, Terraform, is currently being investigated by the U.S. Securities and Exchange Commission (SEC).
https://twitter. com/CNBCMakeIt/status/1475572156616613894
As we mentioned earlier, the SEC’s research is about the Mirror Protocol on Terra. The SEC is investigating whether Mirror, which allows users to trade synthetic assets, is selling unregistered securities.
Strikes Her Eyes
Terra had caught the eye with his big rally recently. Terra’s native token LUNA recently set a new ATH with $103, while the network’s stablecoin UST hit a new record with a market cap of $10 billion.
LUNA is trading at $89 at the time of publication, following the latest bearish wave in the market.