JAKARTA, KOMPAS.com – The crypto asset market has not been doing well lately. The price decline continues and a number of crypto assets are increasingly falling in price.
The crypto market was also rocked by the algorithmic stablecoin TerraUSD (UST) which collapsed in value and failed to maintain parity against the US dollar. Then, LUNA, a crypto asset on the Terra network also lost more than 90 percent of its high price.
From within the country, the crypto asset tax regulation has been officially enforced on May 1, 2022. This has also attracted the attention of investors about the potential of the crypto industry in Indonesia. Some of the events above have made market participants start thinking about the future of the crypto asset industry globally and nationally.
Chairman of the Indonesian Crypto Asset Traders Association (Aspakrindo) Teguh Kurniawan Harmanda said market conditions as a cycle do sometimes go up and down. Therefore, market participants need to respond to this condition with calm and prudence.
“The current downturn in the market is not only happening in crypto. The capital market is experiencing the same thing. Inflation is still relatively close to its highest level. There is never a safe haven when the storm is in full force,” said the man who is familiar with it. called Manda.
Manda added that seeing a sell-off in crypto assets seems unavoidable, but this is not the time to panic. The crypto market is mostly starting to stabilize. If the stock market recovers, it is hoped that the same will happen in crypto.
There are other uncertainties plaguing investor sentiment at the same time. Russia-Ukraine geopolitical tensions, worsening inflation, supply chain problems, oil price fluctuations, slowing growth in China and concerns about the impact of the Covid-19 outbreak also contributed to the anxiety.
“Many crypto assets have gone up quite high in recent months and years, perhaps to the point that they are trading more than they should. When the situation is so uncertain as it is now, market volatility is always higher,” he said.
The crypto industry has grown with various innovations. What started as an economic concept, such as investment and has now penetrated into the world of the blockchain ecosystem. An innovation can fail and succeed, and algorithmic stablecoins are one of them.
“The current drama is testing algorithmic stablecoins to see if they succeed or fail. However, there are many good sides to stablecoins with different concepts. It is hoped that crypto project developers can find cutting-edge innovations in the near future through new projects,” he said.