The SEC Office reveals the results of a study that found more than 300,000 Thais lost from LUNA coins with a total damage value of more than 980 million baht.
Back in the past year, Luna, the Terra Coin, had a higher return of 16,674% and a lot of interest. The price of Luna has reached a high in April 2022.
but after the coin UST(TerraClassicUSD), the stablecoin of Terra’s network, is backed by Luna through an algorithmic mechanism that the coin developer ties (Peg) to the US dollar. It cannot remain valued at the rate of $1 UST to $1. This resulted in a loss of trust among coin holders and traders, resulting in a continuous sell-off of UST, affecting the value of Luna.
Risky, but why do people still invest?
- The first factor, hoping to buy short-term and underestimate the risk, is the price of Luna after it has bottomed out (as of May 13), as well as the return to trading after it has had. Temporary suspension of trading The price of Luna has soared to around 400 times (as of May 14) from its lowest point. The price adjustment has increased dramatically, resulting in a large number of people flocking to buy. It is thought that they can profit from periods of high price volatility. This type of behavior may be explained by behavioral biases of traders who often find themselves over-confident. (Overconfidence), that is, forecasting the opportunity to earn higher than it is. while underestimating the risk of loss
- The second factor, overconfidence, is confidence in Luna’s project, which was historically a top 10 coin with the most market capitalization in the world. As well as the founder’s announcement of a revival plan to salvage the Lunar coin situation, it has brought in a large number of new traders who have never bought Luna.
Thai people for 5 months only lose from LUNA coins 980 million
Summarizing the profit/loss of the accounts of each group of traders studied in the Thailand Digital Asset Trading Center. It was found that the net loss was approximately 980 million baht.
The SEC concluded that from the results of this study, it can be seen that traders in the digital asset market aim for short-term speculation. including investment according to the current and focus mainly on the high return numbers Ready to accept losses in exchange for the opportunity to earn very high profits in a short time. which at times may lack investment diversification and assess the risks
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