The collapse of the Terra USD stable coin caused a rush to sell some of the most popular tokens on the digital asset market. This caused Asian stocks that were tied to cryptocurrencies to fall.
Hong Kong-traded BC Technology Group Ltd. fell up to 7.5 percent, putting it on track for its lowest close in more than four years.As a result, Japan’s Monex Group Inc., which operates the TradeStation and Coincheck platforms, fell as much as 8.6 percent, while South Korea’s Woori Technology Investment Co. fell 6.6 percent.
In a note, Ed Moya, a senior market analyst at Oanda, wrote, “It is a very tense period in crypto markets following the collapse of the contentious stablecoin UST (based on the Terra blockchain) and as the bulk of institutional crypto investors that invested last year are now losing money.”
Avalanche, a favourite of decentralized finance, fell nearly 37% on Wednesday, while Solana fell 33%. Bitcoin fell 8.4% to $28,402.78, its lowest level since December 2020. All three tokens rebounded in early trade on Thursday.
