Chaos On Crypto Market, Gary Gensler Predicts There Will Be Collapsed Coins

Chairman of the US Securities and Exchange Commission, Gary Gensler. (LiveCoins)

JAKARTA – The crypto market has experienced a decline in recent weeks, plus the fall of Terra (LUNA) has further exacerbated the digital asset market. Recently the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler revealed there will be more coins that will "fail".

In his view, the coin's failure will cost more investors. The collapse of UST and LUNA has harmed many people, not only financially but also psychologically.

When Terra collapsed, a LUNA investor came to Do Kwon's house without permission, because he had lost tens of billions as reported by South Korean media Yonhap News.

In addition, there were also rumors about LUNA investors committing suicide. But until now there has been no official confirmation of these rumors.

Reported by CryptoPotato, the cryptocurrency market has declined significantly in recent weeks. Bitcoin, for example, is down more than 25 percent in the last 14 days. However, all eyes were on Terra's native token, LUNA, which fell from nearly 80 US dollars to less than a penny in a matter of days.

The UST project's algorithmic stablecoin lost its ties to the US dollar and is currently trading at 0.08 US dollars per token. Many people believe UST to be the source of the collapse of Terra's main coin, LUNA.

For this reason, SEC chairman Gary Gensler stated that crypto traders should be prepared to see other coins experience similar failures. That way, investors are threatened with losing funds and trust in cryptocurrencies will be undermined.

“I think a lot of these tokens will fail. I'm worried in crypto… there will be a lot of people getting hurt," Gensler said.

The SEC chairman will continue to closely monitor crypto trading. The SEC also urges crypto exchanges to be registered under a financial regulatory agency immediately so that crypto investors get legal protection when dealing with cryptocurrencies.

"They've got to move to register or, you know, we're going to be the cops on standby at any moment, and we're going to take enforcement action," Gensler said.

This May, the SEC stepped up its oversight of cryptocurrencies. The regulator is also strengthening its internals by adding 20 to 50 experts to fill the Cyber and Crypto Assets Unit section of the SEC. It didn't stop there, they added a staff of lawyers, fraud analysts, supervisors, and legal advisors.