Crypto markets are suffering in the wake of the Terra UST stablecoin’s collapse, which came after losing its $1.00 peg. In the process, over  $60B in value was wiped out, leaving token holders confused over what might have happened to the algorithms meant to safeguard the Terra community from such a devastating loss. A common litigation fund has been organized, but many are worried about certain red flags associated with the fund’s launch. 

CryptoSlate reports that the social aspects behind Terra’s demise are ‘catastrophic.’ A compensation fund has been organized as a decentralized autonomous organization (DAO). Donors can donate to the fund, and in doing so, gain voting and other administrative rights to decision making functions. 

Those concerned with the lack of regulation of cryptocurrencies claim they see red flags associated with the fund, however not much in the way of specifics have been delivered, and thus far no guidance from regulators or attorneys has been issued.  

Click here to read more about Terra’s common litigation fund.