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Huobi CEO Says: Terra Incident Is Not A Risk To Crypto Ecosystem

Huobi CEO Says: Terra Incident Is Not A Risk To Crypto Ecosystem

Du Jun, CEO of Huobi Global said that the Terra crash will dampen investor enthusiasm in the short term, but in the long run, demand will recover.

Since the demise of Terra (LUNA) and TerraUSD (UST) could have a noticeable short-term impact on the decision-making of both institutional and retail investors, it poses no risk to the ecosystem. larger cryptocurrencies, according to Huobi Global CEO Du Jun.

In an interview with Cointelegraph, Jun explained that the demise of Terra will affect the ecosystem by slowing investor interest in cryptocurrencies as an asset class.

However, Jun notes that this will only be a short-term impact. In the long term, the exchange’s CEO explained that the demand for cryptocurrencies like Bitcoin (BTC) as a hedge against fiat inflation will grow with the advent of new applications for blockchain.

“In the long term, demand for cryptocurrencies as a hedge against fiat inflation will continue to grow, as will the applications of blockchain technology.”

When asked about critics who are using Terra’s demise as an opportunity to delve into the entire crypto market, Jun emphasized that incidents like Terra occur in many other industries as well.

Market crashes and coordinated attacks are not unique to cryptocurrencies,” Jun said. He further explained that the long-term sustainability of an industry always depends on the demand for services in that industry.

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