A class action lawsuit against the TERRA foundation and exchanges?

A brief overview of cryptocurrency trends

Bitcoin has once again tested the lower limit of the $28000-31000 short trading range indicated in previous analyses, confirming that support is holding.

At the time of writing the major cryptocurrency is trading at about $29200.
Market capitalization $1249 billion, BTC index dominance 44.6%.

Equity indices yesterday experienced yet another day of high volatility, with the S&P 500 first testing the key area at 3800 points, updating the yearly low, and then abruptly reversing and closing at 3901.

To the already decidedly deteriorating macro environment (inflation, energy and food crisis, threat of a major war) was added the monkey pox. And the factors we reviewed yesterday (the inadequacy of the WHO response and the U.S. purchase of a vaccine for 119 million from the Danish company Bavarian Nordic) threw fuel on the fire. Curious statements by German Health Minister Loterbach, who says how the current version of smallpox was caused by a leopard bite.

It is not yet known who and under what circumstances was bitten by a leopard, but let us say that the story is very similar to that of the famous bat in a Wuhan market.

Producer prices in Germany rose 33.5 percent in April. This is the highest figure since 1949.
Regional and local currencies continue to suffer around the world far more than the dollar, with Sri Lanka's central bank yesterday forced to declare default for the first time in the country's history.

On the crypto front, Bitcoin tested support in the $28,000 area for the third time this week, and with the low volumes over the weekend we are likely to have more tests. However I believe that reasonably on Monday when the markets reopen bitcoin will still be trading within its trading range.

The TERRA - LUNA affair.

The topic of discussion that continues to hold sway in the crypto market is still that of the implosion of UST and LUNA. After all, we are talking about a crack of more than $40 billion involving tens of thousands of people around the world.

Yesterday, the CTO of Tether (which issues the USDT stablecoin) said that Terra was not a scam, just a project designed and developed with obvious vulnerabilities. I agree, as evidenced plastically by the destructive spiral into which the stablecoin UST and the LUNA token, which was supposed to guarantee its peg to the dollar, have spiraled.

But the disaster generated has clear profiles of responsibility. Let us clarify one thing, there is a substantial difference between the holders of Luna and Ust:

• the former is a speculative token and it is almost impossible to get some sort of compensation for it. The TERRA Foundation is working on a fork of the network with an associated airdrop of a new token to Luna holders. However, I would not have high expectations, since an insta-dump immediately after the airdrop is extremely likely;
• the UST issue is different, very different. UST was advertised and sold as a "stable and safe product with which to generate risk-free returns."

These have been the notes of language in recent months, just go reread the marketing campaigns promoted by TERRA itself and its many partner platforms, including many top exchanges in the industry. There are 3 major profiles of responsibility:

• 1. the Terra foundation, which developed and promoted its flagship product (UST). It is estimated that between $80 million and $200 million is still in the company's reserves, which is obviously not enough to compensate everyone.

1. personal responsibility of founder Do Kwon, the team of developers and foundation employees. These people have been shown to have pocketed hundreds of millions of dollars in recent months, and there are still ongoing investigations. And it is clear that after such a crack, these people cannot dismiss the events with a simple "TERRA is more than Ust," as they are trying to do. It clearly doesn't work that way.
2. platforms and promoters of UST/Anchor. This is the category that is least discussed and instead is the one on which the spotlight should (and will) be shone the most. For months, misleading advertisements have been circulating, inducing small investors to gain exposure to a product that was presented as stable and safe, on par with the other USDT and USDC stablecoins.
   Unfortunately, the reality is quite different and the lack of due diligence shows how these companies have been negligent to say the least. And if you think I am exaggerating, check out this article. A Brazilian cryptocurrency exchange compensated all its users who had purchased UST by delivering stable USDT in a 1:1 ratio.

At this point I believe there is every basis for considering a class action to seek compensation for the ill-gotten gains.

Over the past few days I have read heartbreaking stories that in some cases have moved me to tears, demonstrating how many people have been significantly affected by the events, and I also find some of the assessments I have read around that these people were asking for it unbecoming.

Again, we are talking about a product that has been marketed as safe and reliable by the cream of industry platforms, on par with a deposit account with which to generate passive returns.

There is a substantial difference between this and buying a speculative cryptocurrency.

Terra's crack undermined the reputation of the entire industry by seriously harming people, both financially and in terms of mental stress that they did not deserve, and this is not tolerable!