- Pritchard referenced a recent Opinium poll by the FCA.
- In April 2022, the LUNA was valued at over $100; it is now worth less than a penny.
This year, the FCA (Financial Conduct Authority) in the United Kingdom “will absolutely need to take into account” the recent volatility in cryptocurrency markets while drafting a new regulatory framework.
Setback For the Global Crypto Adoption
This comes after FCA executive director for markets Sarah Pritchard shared her view on the sudden fall of the TerraUSD (UST) and LUNA stablecoins last week. Unsurprisingly, Pritchard referenced a recent Opinium poll by the FCA, which found that 69% of those under 40 who invested in cryptocurrencies wrongly assumed that they were regulated by the FCA and hence were unable to comprehend the absence of investor protection and the danger to their funds.
The algorithmic stablecoin TerraUSD has fallen from $1 to below $0.15 and is currently trading at even lower levels of roughly $.008, according to CoinMarketCap. In April 2022, the LUNA token was valued at over $100; it is now worth less than a penny.
Even Bitcoin, which was utilized to keep TerraUSD stable, has plummeted its value. A month ago, the most popular cryptocurrency sold for about $43,000, but it has since dropped to just around $26,000 last week. However, the BTC price rebounded and is now trading in the $29k range.
Just over two months ago, the UK’s finance minister unveiled lofty intentions to become a “global crypto asset technology hub.” With these new intentions, stablecoins will be recognized as a form of payment under current regulations for electronic money and payments companies, according to Treasury’s April announcement. According to CMC, the Terra price today is $0.000132 USD with a 24-hour trading volume of $332,674,771 USD. Terra is down 7.96% in the last 24 hours.