Luna 2.0 price volatility raises concerns over possible repeat performance
Terra Luna 2.0 is facing growing skepticism over its sustainability, as the price for the revived cryptocurrency is taking investors on a roller-coaster ride. The controversial token continues to see volatile ups and downs in the market, rekindling concerns over a possible outcome similar to the recent Luna fiasco.
According to data from CoinMarketCap, the Luna 2.0 price once rose to nearly $12 at one time on Tuesday morning, but it has since fluctuated multiple times and plunged down to $6.90 as of 2:35 p.m. Wednesday, a drop of 42.5 percent.
For now, Korean crypto exchanges are not offering any trading services for the rebranded Luna token, but it can still be traded on major overseas exchanges. Even if no dataset has been collected, a huge number of Korean investors are known to bet on the new cryptocurrency by engaging in day trading in hopes of generating large gains by taking advantage of its high price volatility.
But industry officials advise investors to refrain from taking such a risky investment strategy, as it has been only a few days since trading of the cryptocurrency resumed.
“Financial authorities cannot protect investors in the cryptocurrency industry, as there are no regulations or laws to do so,” a Seoul-based economist said. “It is more like gambling that comes with an inherent risk.”
Authorities here and abroad also maintain a position of warning against blind optimism in the risky world of crypto investment.
“Many investors suffered losses and even lost their life savings in the recent meltdown of Terra and Luna, which triggered knock-on effects on Bitcoin and other cryptocurrencies,” Singapore’s Deputy Prime Minister Heng Swee Keat said. “Retail investors especially should steer clear of cryptocurrencies. We cannot emphasize this enough.”
Kim So-young, vice chairman of Korea’s Financial Services Commission, pledged to take legal measures to protect investors better.
“We are going to take part in a digital asset basic law enactment to build an environment where investors can engage in investment activities without fear,” he said in a recent National Assembly seminar.