[wmf]

If the market can't discern honest players from the criminals, then how will an honest attempt at these coins ever succeed?

Yeah, this is a huge problem for crypto in general.

The problem is that we don't know that they're criminals until they've gone under, and there's no due diligence or oversight to verify that they're legit

At least one third party analyzed Terra's algorithm and predicted the collapse around 6 months before it happened.