Successful crypto-focused venture capitalist Arthur Cheong is thinking of a few steps the decentralized finance (DeFi) world needs to take to prevent another high-profile collapse like Terra (LUNA).
DeFiance Capital founder Cheong says the past week has been an “incredibly humbling and difficult event” even though his firm generally called the bearish direction of the market correctly.
“Personally, this has been an incredibly humbling and difficult event. We generally got the bearish direction right so been a lot more cautious but many of our assumptions are challenged and invalidated. We could have done much more as well to prevent this.”
He thinks Terra’s implosion will “set the space back by a few years” and whip up “increased and justified” regulatory scrutiny of DeFi around the world. The venture capitalist calls on the industry to act more professionally.
“I think a more comprehensive disclosure framework for DeFi should be championed so instead of a forced KYC/AML [know-your-customer/anti-money laundering] nightmare like the tradfi [traditional finance] world, we should push for maximum awareness/education before encouraging the usage/access of DeFi.”
“A reputable, independent and well-managed DeFi directory with a comprehensive disclosure framework makes sense and should do a lot to alleviate the knowledge gap.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Vladi333
The post Here’s How To Prevent the Next Terra (LUNA) Collapse, According to Crypto Venture Capitalist appeared first on The Daily Hodl.