Georgieva, President of the International Monetary Fund (IMF), said on Monday that the stable currency without asset support is a pyramid scam, implying the impact of the recent collapse of terrausd and Luna on the cryptocurrency market. Earlier this month, terrausd lost its peg to the US dollar, and its sister token Luna once fell to US $0. This incident triggered a massive sell-off in the entire cryptocurrency market, resulting in the erasure of hundreds of billions of dollars in market value.
"When we look at a stable currency, this is an area where great chaos occurs. If a stable currency has asset support, one-to-one, it is stable. When it has no asset support but promises to provide a return of 20%, it is a pyramid. What happens to the pyramids?... they will eventually fall apart," Georgieva said at a panel discussion at the world economic forum on Monday
Georgieva's comments came after ECB president Christina Lagarde said in a television interview broadcast over the weekend that cryptocurrencies were "worthless".
On Monday, Scott Minard, chief investment officer of Guggenheim partnership, an American investment leader, said he thought bitcoin could fall to $8000 from about $30000, adding that most cryptocurrencies were "junk".
US hedge fund tycoon bill ackman also commented on the collapse of terrausd and Luna last week, calling it a "cryptocurrency version of the pyramid scam". "When I read Terra's' algorithm ', it sounds like a cryptocurrency version of a pyramid scam. Investors are promised a 20% return, supported by a token whose value is only driven by the demand of new investors for this token. There is no underlying business," he wrote