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| The graph shows the daily price movement of the rebranded Luna token. Screenshot from CoinMarketCap |
By Lee Min-hyung
Cryptocurrency investors are urged to be on high alert due to the huge price volatility of the rebranded Luna token, as its price keeps showing a downward trajectory without any clear signs of a rebound.
As of 3 p.m. Wednesday, Luna's price came in at $3.40 (4,260 won), down by around 20 percent from the previous day, according to data from CoinMarketCap.
The new version of the ill-fated Luna token grabbed the attention of crypto investors, as its price has continued to fluctuate with huge volatility for the past few weeks since its launch in late May. Up until late May and early June, Luna had repeated volatile ups and downs with a drastic curve.
Nonetheless, it has since lost its recovery momentum, with its valuation showing few signs of bouncing back. This situation has sparked concerns that more retail crypto investors might invest in Luna to reap short-term profits by short selling.
It remains to be seen whether the new Luna token will be able to achieve a major rebound. Concerns are mounting that investors may be falling victim to the risky crypto investment once again, industry sources said.
"The price of the rebranded Luna token is also displaying wide fluctuations, and is now on a steep decline only a few days after its launch," an industry analyst said. "For now, it is more like speculation than an investment when investors buy and sell the cryptocurrency."
As Luna's collapse has also frozen sentiment for the overall crypto market, industry insiders advise investors to pay more attention to more stable cryptocurrencies ― such as Bitcoin, the price of which has also fallen to a one-year low of around $30,000 in the wake of the Luna fiasco.
The market is in a "crypto winter" phase after the Luna incident, which resulted in around a 50-percent drop for Bitcoin since last November, according to a report released by Bithumb, one of Korea's major crypto exchanges.
"Now is an opportune time for medium- to longer-term investors to purchase Bitcoin due to its price attractiveness," Lee Mi-sun, the research center chief at Bithumb, said. This situation is because risks of external monetary uncertainties ― represented by the U.S. Fed's key rate hikes ― will diminish, as the GDP growth of the world's largest economy shows signs of slowing down gradually next year, which will likely reduce the likelihood of the Fed to remain hawkish in its upcoming monetary policies, she explained.
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