Luna scare has investors pulling back from crypto

It’s an immature market and investors need to exercise caution. Nevertheless, the $40 billion collapse of a so-called stable currency has investors in the region questioning the stability of the crypto market.

Last week’s $40 billion collapse in the Terra Luna stable currency platform is a major setback for cryptocurrencies and digital assets in Asia. The sector had won a great deal of support from investors in the region, particularly wealthy families, but is now facing considerable scepticism.

“How ironic it is that a stablecoin caused an upheaval in the crypto markets,” said Edward Foo, managing director at Singapore-based Pacific Harbor Group, in an online forum on Monday.

“Oh what a brave new world we live in now. Perhaps in the crypto metaverse, the word ‘stable’ means something else.”

Iu-Jin Ong, CEO at Ambitum Capital Limited, a Hong Kong-based single-family office, told AsianInvestor, “It is certainly a concern that any instrument (such as Luna) can have such a systemic impact on the market, but at the same time it is not surprising given the relative infancy of crypto.”

Source: https://www.asianinvestor.net/article/luna-scare-has-investors-pulling-back-from-crypto/478079