Lunatics should pay the price
Following the collapse of Luna, small-time punters will want compensation. Lawmakers and courts should ensure the right people pay.
Following the collapse of Luna, small-time punters will want compensation. Lawmakers and courts should ensure the right people pay. Getting this wrong would trivialise our monetary system and undermine the credibility of legitimate blockchain technologies.
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Following the collapse of Luna, a cryptocurrency, Vitalik Buterin, a co-founder of Ethereum, tweeted that he supported rescuing minor owners of the stablecoin first. “Strongly support this,” Mr Buterin wrote from his account, “coordinated sympathy and relief for the average UST smallholder.” Buterin also suggested that the Federal Deposit Insurance Corporation (FDIC), a United States government-backed agency that insures the deposits of American banks and credit unions could do this. “The obvious precedent is FDIC insurance (up to $250k per person),” he added.
It’s unclear if Buterin believes the FDIC should, or even could, do this or whether he envisions the cryptosphere should create a similar backing. Either way, lawmakers shoul…