Singapore’s Deputy Prime Minister Bearish On Crypto Following Luna’s Crash

Heng Swee Keat, the deputy prime minister of Singapore, who is also currently serving as the coordinating minister for economic policies warned retail investors to keep cryptocurrencies at arm’s length.

Luna’s crash stirs more bearish sentiments about crypto

Heng financially advised the public, via a speech at the opening of the Asia Tech x Singapore summit on Tuesday, 31 May. In his words;

“Many investors suffered losses and even lost their life savings in the recent meltdown of TerraUSD and Luna, which triggered knock-on effects on Bitcoin. Retail investors especially should steer clear of cryptocurrencies” 

The DPM also charged to approach Web 3.0 with an open mind. He went further to explain that the way to understand the potentially transformative underlying technologies is to ‘pierce through the hubris and veil of suspicion’

As a way of collaboration to harness the potentials of the crypto asset space, Heng Swee Keat took the opportunity to reintroduce a common data infrastructure for the sharing of regulatory, logistics and trade financing data—SGTraDex—a public-private partnership that he launched at the same Summit the year before.

He was certain that the infrastructure will ‘enable supply chain players to optimise cargo handling and operations, and build confidence in trade financing’.

TerraForm Labs still on hot seat

Meanwhile, The founder, Do Kwon and executives of Terraform Labs, the publisher of the stablecoin UST and Terra tokens, are currently undergoing investigations in South Korea.

South Korea’s specialized crime unit are conducting serious investigations to ascertain the main cause of the Terra crash. So far, the specialized crime unit has interrogated all TerraForm Labs staff, especially the ones involved when  the development of the project was at its initial stage in 2019

An employee has opened up about Kwon being warned against launching the project due to the high interest Terra proposed to pay investors of its Anchor Yield program. In the employee’s words;

“If you pay interest of several tens of percent to investors without a stable collateral or profit model, people may flock to you at the beginning. At a certain point in time, it has no choice but to collapse because it cannot handle interest payments and fluctuations in value,” 

However, Kwon had defied the warnings and went on to launch Terra with the very same model and according to the prediction, the token crashed and put many people and entities into severe losses.