Investors look at flip side of crypto coin

economictimes.indiatimes.com:

Mumbai: Ashwin Nadar, a 25-year-old software engineer based in the country’s commercial capital, is still shocked by the sudden collapse of Luna, a popular cryptocurrency, last week. “It was a disturbing event. I bought Luna at $73 and got out at 24 cents,” he said. “I had a small investment, but as someone who believed in ‘smart contract’ cryptos, it was painful to watch the event unfold.” After the plunge, Nadar sold some of the altcoins he held—Avalanche, Near and Algorand—and moved money to Bitcoin and Ethereum for some time.

Did you Know?

Apparel maker Gap has launched NFTs for its iconic hoodies. The more than 50-year-old company's push to sell virtual assets for real money follows similar moves by clothing companies such as Nike

“Now I am doing a deep dive into the tokens to understand their technology, viability, and most importantly, the actual value that they offer. Once they are trading at lower prices, I will buy them back,” he said. Investors like Nadar, already reeling from the imposition of a high tax rate on crypto income by the government, are rethinking investments and rejigging portfolios as bears continue to pull down the market. Most investors have seen their portfolios sink deep into the red as carnage continues in the crypto market due to a confluence of factors including inflation, rising interest rates, the Ukraine-Russia conflict, volatility in stable coins, and the recent crash of the Terra ecosystem. Terra dropped to $0.0002996 on Sunday after touching an all-time high of $119 in the last 12 months, wiping out investments worth crores from Indian crypto investors’ pockets. “In every bear market, we have seen that Q2 is volatile, but market conditions usually