WEBVTT - 5 things you need to know about the crypto market crash | EP 3

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<v Speaker 1>mm hmm.

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<v Speaker 1>Hello and welcome. It was a crash that wiped out

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<v Speaker 1>an estimated $400 billion off the combined crypto market and

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<v Speaker 1>its effects are still being felt today. The collapse of

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<v Speaker 1>the terror USd, stable coin and lunar tokens have shaken

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<v Speaker 1>investor confidence in cryptocurrencies, many of whom have lost their

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<v Speaker 1>life savings

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<v Speaker 1>yet despite this, many investors believe that the market will

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<v Speaker 1>recover stronger than ever.

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<v Speaker 1>I'm Jonathan. Perez from the management team here at C

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<v Speaker 1>N A. And today we'll be looking at the five

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<v Speaker 1>things you need to know about the crypto market crash

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<v Speaker 1>joining me now for this podcast. Tarzan one, she's a

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<v Speaker 1>board member from the Association of Cryptocurrency Enterprises and startups

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<v Speaker 1>Singapore or access and Xenon Kapron, director of Fintech research

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<v Speaker 1>and consulting firm Kapron Asia, Welcome to the show. Both

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<v Speaker 1>of you. Thanks for having us.

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<v Speaker 2>Thank you. Thanks for having us.

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<v Speaker 1>When we talk about a crypto crash like this, the

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<v Speaker 1>first thing of course everyone wants to know is how

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<v Speaker 1>did this happen? But first some background unlike most stable

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<v Speaker 1>coins which are fully backed by currency reserves, terrorist. Ust

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<v Speaker 1>stable coin was backed by an algorithm linked to its

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<v Speaker 1>sister token luna.

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<v Speaker 1>And the price of that USd had soared in the

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<v Speaker 1>last six months due to a platform called anchor

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<v Speaker 1>Which offered a 20% yield to anyone who bought the

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<v Speaker 1>USD and lent it to the protocol.

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<v Speaker 1>Now coming off that then in your opinion, what precipitated

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<v Speaker 1>the crash of terror. You kind of pointed to it, Jonathan.

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<v Speaker 1>First of all, crypto is very new space in general

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<v Speaker 1>and and many of these models, both from a technical

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<v Speaker 1>perspective and a and a functionality perspective are still being

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<v Speaker 1>worked out.

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<v Speaker 1>And when we look at stable coins, we obviously have

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<v Speaker 1>the stable coins like U S D. C. Or U

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<v Speaker 1>S D. T. That are backed by a traditional currency.

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<v Speaker 1>But then you have these algorithmic stable coins like terra

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<v Speaker 1>and UST that were a new model and a new

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<v Speaker 1>way of managing this float for a stable coin because

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<v Speaker 1>it's early days. Obviously there are a lot of issues

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<v Speaker 1>with this and it was really the perfect storm of

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<v Speaker 1>conditions that precipitated this fall

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<v Speaker 1>with a luna token going down and then Usd following.

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<v Speaker 1>We saw the massive crash. So many people said it

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<v Speaker 1>was predictable.

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<v Speaker 1>When you look at an algorithmic stable coin. The code

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<v Speaker 1>for these stable coins is public domain and people can

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<v Speaker 1>look at that and the models. So there are a

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<v Speaker 1>lot of people that were predicting it. But as you

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<v Speaker 1>pointed out as well, there were a lot of people

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<v Speaker 1>that had invested tremendously and really believed in both the

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<v Speaker 1>business model and the technology behind it

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<v Speaker 1>then, were there any warning signs for investors? I mean

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<v Speaker 1>could they have avoided this?

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<v Speaker 2>Yeah, on the high side, a lot of people in

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<v Speaker 2>the crypto world did point out some witnesses like Zenon

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<v Speaker 2>has mentioned earlier. Unlike other assets back, stable coins, Terror

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<v Speaker 2>is an algo stable coin. Looking at the plan to

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<v Speaker 2>defend its plaque and also in a way it is

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<v Speaker 2>a decentralized stable coin but at the same time it's

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<v Speaker 2>controlled

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<v Speaker 2>by a centralized group of people. So there are few

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<v Speaker 2>weeks spots that people on the hindsight pointed out and

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<v Speaker 2>said it was pretty obvious that it couldn't withstand a

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<v Speaker 2>bear market and the deep packing will inevitably happen.

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<v Speaker 2>But what really kicked off the slide was first there

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<v Speaker 2>was a sell off in terror and it seems to

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<v Speaker 2>a lot of communities and people in crypto that it

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<v Speaker 2>looked like a concerted effort to push down the price

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<v Speaker 2>in terror in combination of a few things happening at

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<v Speaker 2>the same time where the market was pretty weak there

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<v Speaker 2>are some transfer of or creation of new pool by

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<v Speaker 2>the lunar formation guard So it seems to be an

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<v Speaker 2>opportunity to push down the price and terror is experimental

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<v Speaker 2>defense set up to maintain the pack when the price

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<v Speaker 2>of terror start to fall and lunar the market cap

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<v Speaker 2>in the first place

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<v Speaker 2>was in

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<v Speaker 2>on par to defend that and then you went into

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<v Speaker 2>this death spiral

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<v Speaker 2>and obviously that

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<v Speaker 2>affected the confidence of stable coins.

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<v Speaker 1>And in fact that is the big surprise here right

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<v Speaker 1>and then that this was supposed to be a stable coin.

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<v Speaker 1>Now if this turns out it is not stable then

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<v Speaker 1>where is crypto safe place then in your opinion people

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<v Speaker 1>who have been in crypto for a while this kind

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<v Speaker 1>of activity or this kind of collapse is nothing new.

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<v Speaker 1>And when you look back to the beginning of Bitcoin,

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<v Speaker 1>the collapse of Mount docks

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<v Speaker 1>A couple of times where Ether was up to $1,000

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<v Speaker 1>and then down to $100.

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<v Speaker 1>These ebbs and flows and cycles are nothing new to

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<v Speaker 1>people in the crypto space. The challenge here is obviously

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<v Speaker 1>that there are a lot of new people that came

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<v Speaker 1>into the ecosystem through luna and USt we've seen the

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<v Speaker 1>reporting over the past couple of weeks where people have

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<v Speaker 1>been really in many cases shattered. I lost a trivial

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<v Speaker 1>amount of money with this, I played around with it

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<v Speaker 1>and lost a bit myself, but

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<v Speaker 1>Nothing that really hurt my life. But many people put

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<v Speaker 1>a significant amount of their assets into this. And on

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<v Speaker 1>one side you have the view that this is going

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<v Speaker 1>to go to the moon and luna get up to

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<v Speaker 1>over $100 at one point which for people who have

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<v Speaker 1>bought in for less than a dollar, that's a huge return.

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<v Speaker 1>You see the bright side, you know, you see the

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<v Speaker 1>people that have made 100 X on investing in this.

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<v Speaker 1>But you don't see the people that have lost money

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<v Speaker 1>and unfortunately, you know when things go down and as

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<v Speaker 1>zan mentioned this death spiral that we've seen, you have

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<v Speaker 1>to be careful what you wish for because in decentralized systems.

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<v Speaker 1>You know, you you have to have belief in the code.

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<v Speaker 1>And as you pointed out, it seems to have been

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<v Speaker 1>a concerted effort where somebody looked at the code, looked

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<v Speaker 1>at the algorithm and figured out a way to exploit that.

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<v Speaker 1>And that's not unique. I mean there have been many

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<v Speaker 1>cases over the past couple of months where people have

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<v Speaker 1>looked at these smart contracts or algorithms and seen holes

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<v Speaker 1>in the code and ways to leverage that for their

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<v Speaker 1>own benefit.

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<v Speaker 1>Now at this point then some critics of Kryptos have

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<v Speaker 1>actually called for more regulatory oversight. Do you think that

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<v Speaker 1>could actually help to prevent this from happening again? Or

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<v Speaker 1>is that also not a good thing for Kryptos?

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<v Speaker 2>The immediate reaction, I mean it's reasonable to think that

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<v Speaker 2>oh we need more regulations. We need to prevent people

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<v Speaker 2>from over invested over participated in D5. But I think

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<v Speaker 2>we've got to be aware that regulatory oversight is not

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<v Speaker 2>a perfect tradeoff for risk. Yeah, because it is so new.

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<v Speaker 2>And when you think about

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<v Speaker 2>Decentralized entities or platform, it is almost impossible to regulate them.

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<v Speaker 2>And I think that is probably why it takes a while, regulators.

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<v Speaker 2>Central banks has been talking about stable coins regulations, but

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<v Speaker 2>nothing really solid has come in and there were lots

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<v Speaker 2>of warning signs. Even Singapore mes first spoke about regulating

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<v Speaker 2>crypto in 2014

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<v Speaker 2>and P. F. A. X.

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<v Speaker 2>Didn't come in until 2020 things are happening so fast.

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<v Speaker 2>In defi space regulation needs to be on point, right?

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<v Speaker 2>Any under overregulation, What I would call like a gold

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<v Speaker 2>displacement

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<v Speaker 2>in regulatory oversight. That means that you did not achieve

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<v Speaker 2>your goal and end up impacting innovation or like a

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<v Speaker 2>negative growth in the up and coming industry. Yeah. So

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<v Speaker 2>I think that that is something that is not just

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<v Speaker 2>plain and simple. It's not binary. You need to put

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<v Speaker 2>more thought into it in regulation.

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<v Speaker 1>When Luna was over $100, it's very easy to say,

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<v Speaker 1>you know, we don't need regulation, everything's going fine in crypto.

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<v Speaker 1>But when all of a sudden you're luna is now

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<v Speaker 1>worth fractions of a penny. That's the time that you

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<v Speaker 1>might want regulations to be there. Because if that was

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<v Speaker 1>a traditional financial product, in theory, the government would be

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<v Speaker 1>there to support any kind of clean up afterwards. But

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<v Speaker 1>right now the cleanup is being done by the same

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<v Speaker 1>people that created the problem in the first place, which

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<v Speaker 1>is the luna team. And it doesn't seem like many

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<v Speaker 1>of these people are going to get their money back

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<v Speaker 1>when we're in a bull market, we kind of lose

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<v Speaker 1>sight of and we say that, you know, this is great,

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<v Speaker 1>we don't need regulators, but all of a sudden when

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<v Speaker 1>when things start to go paris shape, that's when you

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<v Speaker 1>wish that you had regulation in some of this and

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<v Speaker 2>perhaps what we are really looking for is accountability. People

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<v Speaker 2>are saying that who is accountable for what happened. Right?

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<v Speaker 2>Like talking to attacking the founders of terror. The accountability

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<v Speaker 2>is it self governance.

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<v Speaker 2>How do we even start that

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<v Speaker 1>the crash after it happened, impacted the rest of the

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<v Speaker 1>crypto markets as well. With the contagion briefly spreading to

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<v Speaker 1>other stable coins like ethereum xpr, even Bitcoin hit its

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<v Speaker 1>lowest point since december 2020 zen. And what do you

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<v Speaker 1>see as the impact of this crash on the wider

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<v Speaker 1>crypto market in the longer term? We had gone through

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<v Speaker 1>a couple of years that roughly coordinated with

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<v Speaker 1>the quantitative easing and the market expansion that we've seen

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<v Speaker 1>in traditional economies that made money very cheap. And so

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<v Speaker 1>that fueled investment in VC private equity as well as

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<v Speaker 1>in crypto in general. So as the taps of quantitative

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<v Speaker 1>easing started to be turned off and now we're starting

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<v Speaker 1>to see inflation

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<v Speaker 1>in certain places, actually quantitative tightening and higher interest rates,

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<v Speaker 1>that cheap money is more difficult to come by. So

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<v Speaker 1>it's kind of a natural extension that we would have

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<v Speaker 1>seen with the economic cycles and the traditional economy, I

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<v Speaker 1>think that plus the terror that didn't really help the

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<v Speaker 1>situation in crypto because you had these kind of economic

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<v Speaker 1>forces that were limiting the amount of new money that

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<v Speaker 1>was coming into the market.

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<v Speaker 1>And then all of a sudden you had this meltdown

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<v Speaker 1>of terra

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<v Speaker 1>many of the new people that came into the crypto

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<v Speaker 1>space might have been burned by that and feel that

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<v Speaker 1>this may not be the place for them. We're seeing,

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<v Speaker 1>we're certainly seeing a bit of a more of a

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<v Speaker 1>bear market in Crypto. But again, you know, this is

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<v Speaker 1>nothing unusual. We, we've seen this in the past. The

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<v Speaker 1>challenge in the past is because the, the expansion of

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<v Speaker 1>crypto has been so tightly tied to the economic situation

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<v Speaker 1>in traditional finance.

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<v Speaker 1>If the situation for the global economy doesn't open up

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<v Speaker 1>and money becomes cheaper, we might see an extended downturn

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<v Speaker 1>in crypto as well, which will certainly be challenging because

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<v Speaker 1>then it's more difficult for companies to get financing to

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<v Speaker 1>hire to grow and to experiment, which is what's needed

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<v Speaker 1>really for the crypto industry to continue to grow in

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<v Speaker 1>the longer term,

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<v Speaker 1>then what do you see as the long term impacts

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<v Speaker 1>of this crash?

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<v Speaker 2>I think what is significant to note is the correlation

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<v Speaker 2>between traditional finance asset and crypto is increasing. I think

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<v Speaker 2>Shannon would have more insight on that

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<v Speaker 2>and I went with the bearish outlook of traditional assets.

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<v Speaker 2>I think that has also, in a way brought down

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<v Speaker 2>some of the pressure on crypto as well.

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<v Speaker 2>Long term wise again, to repeat what dan has said,

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<v Speaker 2>this is not the first time that the crypto market

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<v Speaker 2>have seen a downturn personally, I've been in the market

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<v Speaker 2>since 2014 when more gods have, that was supposed to

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<v Speaker 2>be the blacks ones, then there are more and more

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<v Speaker 2>blessed ones along the way. Right? We know and we

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<v Speaker 2>believe that the crypto market will

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<v Speaker 2>or the infrastructure, the community will come back stronger, especially

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<v Speaker 2>what we have learned this time. And I think the

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<v Speaker 2>past few years we experience or see a lot of

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<v Speaker 2>retail participants in the device phase because of the high

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<v Speaker 2>returns in terms of interest like returns. And of course

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<v Speaker 2>the to the moon seems to be to the moon

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<v Speaker 2>prices and

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<v Speaker 2>it's a lesson for all of us.

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<v Speaker 1>Well if you're just joining us, we are talking about

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<v Speaker 1>the five things you need to know about the crypto

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<v Speaker 1>market crash the recent one. And so far we've talked

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<v Speaker 1>about some of the reasons that could have precipitated the crash.

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<v Speaker 1>We also talked about regulatory oversight and how difficult that

0:10:46.270 --> 0:10:48.059
<v Speaker 1>might actually be to implement.

0:10:48.240 --> 0:10:51.290
<v Speaker 1>And also we're talking about the long term impacts of

0:10:51.300 --> 0:10:53.210
<v Speaker 1>the crash and the fact that this is not the

0:10:53.210 --> 0:10:54.359
<v Speaker 1>first black swan event.

0:10:55.040 --> 0:10:57.260
<v Speaker 1>Now, moving on with our discussion then what do you

0:10:57.260 --> 0:11:00.480
<v Speaker 1>think is the number one takeaway for investors from this

0:11:00.480 --> 0:11:03.990
<v Speaker 1>particular crash? The lesson has been the lesson of crypto

0:11:03.990 --> 0:11:07.400
<v Speaker 1>since the very beginning is caveat emptor buyer beware the

0:11:07.400 --> 0:11:09.990
<v Speaker 1>money that you put into this space? It's very easy

0:11:09.990 --> 0:11:13.890
<v Speaker 1>to forget about the losses from MT GOx or the I. C. O.

0:11:13.890 --> 0:11:16.500
<v Speaker 1>S from a couple of years ago or indeed terror.

0:11:16.510 --> 0:11:19.540
<v Speaker 1>You know we as humans have very short memories and

0:11:19.540 --> 0:11:23.230
<v Speaker 1>we often have this cognitive bias to seeing the upside

0:11:23.230 --> 0:11:25.020
<v Speaker 1>and not much of the downside. And so I think

0:11:25.030 --> 0:11:27.689
<v Speaker 1>for the average individual, maybe it's useful to have a

0:11:27.690 --> 0:11:29.860
<v Speaker 1>little bit of money in new crypto but you know

0:11:29.870 --> 0:11:32.460
<v Speaker 1>only invest what you can afford to lose because as

0:11:32.460 --> 0:11:35.059
<v Speaker 1>many people have found out it can go to zero

0:11:35.070 --> 0:11:35.960
<v Speaker 1>or

0:11:36.040 --> 0:11:39.320
<v Speaker 1>close enough that it becomes statistically irrelevant how close to

0:11:39.320 --> 0:11:42.250
<v Speaker 1>zero it is. It's it's fundamentally worthless and we've seen

0:11:42.250 --> 0:11:42.550
<v Speaker 1>that

0:11:42.640 --> 0:11:45.370
<v Speaker 1>in this space. So it's just very important that although

0:11:45.370 --> 0:11:48.260
<v Speaker 1>there are heavy returns from some of these coins or

0:11:48.260 --> 0:11:50.740
<v Speaker 1>some of these assets, it all needs to be taken

0:11:50.740 --> 0:11:54.630
<v Speaker 1>with a risk attitude appropriate for the individuals. I think

0:11:54.630 --> 0:11:56.720
<v Speaker 1>what will be interesting to see is what happens on

0:11:56.720 --> 0:12:00.770
<v Speaker 1>the institutional side. Some institutional investors have been heavy into

0:12:00.770 --> 0:12:03.300
<v Speaker 1>terra and luna and lost out as well. But it'll

0:12:03.300 --> 0:12:05.960
<v Speaker 1>be interesting to see what happens to their appetite as well.

0:12:05.970 --> 0:12:07.870
<v Speaker 1>You know, many of them are more in the kind

0:12:07.870 --> 0:12:10.260
<v Speaker 1>of traditional kryptos like Bitcoin and ethereum.

0:12:10.740 --> 0:12:13.840
<v Speaker 1>But certainly many had exposure to some of these newer

0:12:13.840 --> 0:12:16.240
<v Speaker 1>ones as well. So what they do over the next

0:12:16.240 --> 0:12:18.689
<v Speaker 1>six months will be really indicative and telling of what

0:12:18.690 --> 0:12:21.650
<v Speaker 1>to expect as we look forward, then what's your chief

0:12:21.650 --> 0:12:22.849
<v Speaker 1>takeaway from this event.

0:12:22.860 --> 0:12:25.079
<v Speaker 2>I seem to be saying the same thing after all,

0:12:25.080 --> 0:12:28.930
<v Speaker 2>the downturn is really again, diversification. I came from the

0:12:28.929 --> 0:12:31.850
<v Speaker 2>traditional finance background. I used to think that if you

0:12:31.850 --> 0:12:34.960
<v Speaker 2>know what you're doing, you don't diversify. Sometimes people say

0:12:34.960 --> 0:12:37.710
<v Speaker 2>that you know there are three staker who say that right? No,

0:12:37.710 --> 0:12:40.810
<v Speaker 2>I think not the case when you are new to

0:12:40.809 --> 0:12:43.650
<v Speaker 2>the market first thing learn as much as you can.

0:12:44.040 --> 0:12:47.620
<v Speaker 2>I have people who bought luna and could not explain

0:12:47.620 --> 0:12:50.250
<v Speaker 2>to me the minting and burning mechanism.

0:12:50.640 --> 0:12:52.500
<v Speaker 2>I think that's wrong. You know, if you're going to

0:12:52.500 --> 0:12:55.260
<v Speaker 2>buy something at least know the basic at least the

0:12:55.260 --> 0:12:58.980
<v Speaker 2>very least and know who is the LFG lunar polishing

0:12:58.980 --> 0:13:01.710
<v Speaker 2>part which was just set up in Singapore in january.

0:13:01.720 --> 0:13:04.460
<v Speaker 2>The learning part of being educated part is really important.

0:13:04.460 --> 0:13:07.250
<v Speaker 2>What is level one tokens, what is level two protocol

0:13:07.260 --> 0:13:09.650
<v Speaker 2>and stuff like that. And the other thing is not

0:13:09.650 --> 0:13:10.050
<v Speaker 2>just

0:13:10.140 --> 0:13:10.949
<v Speaker 2>purely

0:13:11.040 --> 0:13:14.510
<v Speaker 2>looking at what's happening in the crypto market because the

0:13:14.510 --> 0:13:18.229
<v Speaker 2>correlation is increased I think with the traditional finance side.

0:13:18.240 --> 0:13:20.170
<v Speaker 2>So I think I might have to look at some

0:13:20.170 --> 0:13:22.440
<v Speaker 2>of the macro that caught up with what is happening

0:13:22.440 --> 0:13:24.559
<v Speaker 2>around the world. Non crypto wife,

0:13:25.040 --> 0:13:27.859
<v Speaker 2>I am still bullish of the whole industry

0:13:28.240 --> 0:13:31.870
<v Speaker 2>being the fact that crypto I believe is going to

0:13:31.870 --> 0:13:35.010
<v Speaker 2>be the key pillars of web 3.0, we're talking about

0:13:35.010 --> 0:13:37.690
<v Speaker 2>medals which is still in the early stages, it has

0:13:37.690 --> 0:13:39.620
<v Speaker 2>to be and it will be one of the key pillars,

0:13:39.630 --> 0:13:43.320
<v Speaker 1>Crypto is not going away anytime soon. Even Terror Ceo

0:13:43.320 --> 0:13:45.470
<v Speaker 1>da Quan doesn't seem to be going away either. He's

0:13:45.470 --> 0:13:48.190
<v Speaker 1>still trying to revive the Blockchain? But where should investors

0:13:48.190 --> 0:13:50.530
<v Speaker 1>go from here? Those and like what is your advice

0:13:50.530 --> 0:13:53.050
<v Speaker 1>stick to the big ones or should they also experiment

0:13:53.440 --> 0:13:56.040
<v Speaker 2>again? I think don't invest in anything. You don't know.

0:13:56.050 --> 0:13:59.110
<v Speaker 2>That's one, even though people say, you know you should invest,

0:13:59.110 --> 0:14:02.160
<v Speaker 2>maybe you should buy some level two protocol tokens, but

0:14:02.170 --> 0:14:05.140
<v Speaker 2>if you don't know anything about it on it first

0:14:05.150 --> 0:14:08.470
<v Speaker 2>and get involved. The community, the community is open. There

0:14:08.470 --> 0:14:11.760
<v Speaker 2>are a lot of discussion online on discord on telegram.

0:14:12.040 --> 0:14:14.320
<v Speaker 2>So these are also breeding ground of scams. I have

0:14:14.320 --> 0:14:17.590
<v Speaker 2>to say that especially I think with the recent outright

0:14:17.590 --> 0:14:21.620
<v Speaker 2>banned of advertisement, right? And also regulatory move all over

0:14:21.620 --> 0:14:26.740
<v Speaker 2>the world, it could have created pockets of opportunity for

0:14:26.750 --> 0:14:30.900
<v Speaker 2>scammers to reach out to genuine bias, right? And genuine

0:14:30.900 --> 0:14:34.560
<v Speaker 2>learners of crypto. So I think besides knowing what to buy,

0:14:34.640 --> 0:14:36.820
<v Speaker 2>where to put your tokens or where to put your

0:14:36.820 --> 0:14:40.640
<v Speaker 2>fiat money is important to recognize what is a scam. Yeah,

0:14:40.650 --> 0:14:42.580
<v Speaker 2>there are people who thought they bought Bitcoin. They said

0:14:42.580 --> 0:14:45.410
<v Speaker 2>I'm safe. I bought Bitcoin or I bought ethereum. They

0:14:45.410 --> 0:14:47.760
<v Speaker 2>actually downloaded a scam wallet and lost it all. So

0:14:47.760 --> 0:14:50.150
<v Speaker 2>that's one thing that we must be mindful of as well.

0:14:50.540 --> 0:14:53.180
<v Speaker 1>So zen and some critics have actually said that retail

0:14:53.180 --> 0:14:56.300
<v Speaker 1>investors shouldn't get involved in crypto because the hedge fund

0:14:56.300 --> 0:14:58.380
<v Speaker 1>guys are the ones holding all the power. Do you

0:14:58.380 --> 0:15:02.190
<v Speaker 1>agree with this and how can retail investors actually protect

0:15:02.190 --> 0:15:03.260
<v Speaker 1>themselves in this market?

0:15:03.840 --> 0:15:06.090
<v Speaker 1>It's a very challenging question because when you look at

0:15:06.090 --> 0:15:11.470
<v Speaker 1>traditional markets, you limit certain asset classes to accredited investors

0:15:11.470 --> 0:15:14.490
<v Speaker 1>or basically individuals that have a certain level of income

0:15:14.490 --> 0:15:18.780
<v Speaker 1>or investable assets to be able to participate in I. P. O. S.

0:15:18.780 --> 0:15:21.240
<v Speaker 1>And private equity or some of the more riskier high

0:15:21.240 --> 0:15:23.760
<v Speaker 1>risk but potentially high reward asset classes.

0:15:24.140 --> 0:15:26.340
<v Speaker 1>And the challenge with crypto is that it is very

0:15:26.340 --> 0:15:29.170
<v Speaker 1>high risk, it is very high reward, but there's no

0:15:29.170 --> 0:15:32.680
<v Speaker 1>gateway and no gate that controls who comes in and

0:15:32.680 --> 0:15:35.410
<v Speaker 1>out of the market. So you could argue that is

0:15:35.410 --> 0:15:38.520
<v Speaker 1>good because and that's what many of the people within

0:15:38.520 --> 0:15:41.240
<v Speaker 1>the industry think is that you have this asset class

0:15:41.240 --> 0:15:44.210
<v Speaker 1>that's open to everybody and everybody can participate but everybody

0:15:44.210 --> 0:15:47.150
<v Speaker 1>can also lose in these cases as well.

0:15:47.340 --> 0:15:49.520
<v Speaker 1>And that's really the challenge for the industry is and

0:15:49.520 --> 0:15:51.450
<v Speaker 1>and for the regulators as hole is where to draw

0:15:51.450 --> 0:15:54.040
<v Speaker 1>that line. I mean, here in Singapore, we've seen regulators

0:15:54.040 --> 0:15:58.400
<v Speaker 1>pushback against crypto advertising, presumably the idea of not bringing

0:15:58.410 --> 0:16:01.770
<v Speaker 1>as many retail investors into the market. The question is,

0:16:01.770 --> 0:16:06.060
<v Speaker 1>should retail have access to this market in general? And

0:16:06.140 --> 0:16:07.660
<v Speaker 1>that's a difficult question to answer

0:16:07.840 --> 0:16:10.150
<v Speaker 1>because you really have the spectrum of people as dan

0:16:10.150 --> 0:16:12.750
<v Speaker 1>pointed out that have some idea that I have no

0:16:12.750 --> 0:16:15.229
<v Speaker 1>idea that have a complete understanding of what some of

0:16:15.230 --> 0:16:17.890
<v Speaker 1>these coins and protocols look like and others that are

0:16:17.890 --> 0:16:20.530
<v Speaker 1>completely flying blind and so that's really the challenge in

0:16:20.530 --> 0:16:22.260
<v Speaker 1>that and where you draw the line for this.

0:16:22.640 --> 0:16:24.729
<v Speaker 2>Can I just add one more thing when we look

0:16:24.730 --> 0:16:27.950
<v Speaker 2>at the victims, what I call of luna this time around.

0:16:27.950 --> 0:16:30.290
<v Speaker 2>I think the worst heat were the group of people

0:16:30.290 --> 0:16:33.370
<v Speaker 2>who took leverage to buy the crypto. So I think

0:16:33.370 --> 0:16:35.880
<v Speaker 2>there is one place that please do not ever go

0:16:35.880 --> 0:16:39.090
<v Speaker 2>there unless you're super sophisticated or you have some hedging

0:16:39.100 --> 0:16:42.070
<v Speaker 2>solution in place but do not leverage to buy crypto,

0:16:42.540 --> 0:16:44.790
<v Speaker 1>zen and zen. Thank you so much for joining me

0:16:44.790 --> 0:16:48.130
<v Speaker 1>in this podcast. Thank you. Thank you. So to recap

0:16:48.140 --> 0:16:51.380
<v Speaker 1>not all stable coins are the same. Those not backed

0:16:51.390 --> 0:16:53.970
<v Speaker 1>by hard currency can be manipulated.

0:16:54.440 --> 0:16:57.600
<v Speaker 1>More oversight is needed but it is not easy to

0:16:57.600 --> 0:17:02.030
<v Speaker 1>regulate Kryptos. Kryptos are not immune to the wider global

0:17:02.040 --> 0:17:07.560
<v Speaker 1>economic conditions, diversification and education is key. You must know

0:17:07.570 --> 0:17:09.050
<v Speaker 1>what you are investing in

0:17:09.640 --> 0:17:11.859
<v Speaker 1>and those are the five things you need to know

0:17:11.859 --> 0:17:15.620
<v Speaker 1>about the recent crypto market crash. Thanks for listening. Money.

0:17:15.619 --> 0:17:18.460
<v Speaker 1>Mind airs every saturday at 10 30 PM on media

0:17:18.460 --> 0:17:21.280
<v Speaker 1>cops C. N. A. You can also catch us online

0:17:21.290 --> 0:17:23.670
<v Speaker 1>at CNN dot asia or on Youtube.

0:17:24.040 --> 0:17:24.270
<v Speaker 1>Mhm.

0:17:29.140 --> 0:17:29.350
<v Speaker 1>Mhm