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Lesson “LUNA” reflects the habits of Thai traders, overconfident, parade of spoons while falling, a loss of 980 million!

Luna“Network Medal”Terra” is another “Crypto In the trading circle, no one knows. Especially after creating a legend shaking the cryptocurrency industry.

The phenomenon from the sky to the abyss of Luna that has traders all over the world can join in creating legends “lesson“No less important times. Not even Thai traders. If counting only trading via domestic exchange, it was found that the total loss was about 980 million baht!

With a return that was higher than 16,674%, Luna’s peak in April 65, the coin has caught the attention of many, but what’s interesting from this lesson is that, “behavior” of those who bought Luna, Thai people who reflect that “too confident” until buying when the price is less than 1 USD, hoping to make profits during the uptrend again

This information was disclosed through an article titled “Insight into the Behavior and Impact of Luna Coin Traders in Thailand Cryptocurrency Exchange” by Pongsatorn Parinyawutichai Research Department, Office of the Securities and Exchange Commission (SEC) that conducts research on buying behavior.”Luna Coin” from 1 Jan. 65 – 22 May 65

The researchers used the milestones that affect Luna’s price to divide them into three periods.

The first period is Pre-stage (Before May 9, ’22) is the period before the price of the UST (stable coin) is about to break out of its binding price of 1 UST to $1, or less than $1.

range Fall-stage The period (between 9-13 May 20) is the period when the price of the UST coin breaks the bound rate. or priced less than 1 USD

and range Bottom out-stage (After May 13, 20) is the period when the price of Luna coin dropped to its lowest point at that time. And the digital asset trading center in Thailand announced the suspension of Luna temporarily for a period of 1 day.

  • 70.26% Luna Spoon Parade at Bottom out

What is interesting is that when looking at the overview of all 315,077 trading accounts in 2022, about 99% of which are domestic investors. and 1% other types of investors, where most of their portfolio sizes are in the range. 5000-1,000,000 baht

When bringing the number of accounts that come into trading divided according to the study period, it appears that The most active period is the bottom out-stage period, or the period when the price has already broken through the board.

  • Pre-stage : Acquired 36,396 accounts or 11.55%
  • Fall-stage : Acquired 57,300 accounts or 18.19%
  • Bottom out-stage : bought 221,381 accounts or 70.26%

In addition, from the total number of accounts that have traded in Luna, there are 211,723 accounts, approximately 67% of whom have experience in trading other coins but have never bought Luna and have just started trading in the bottom out. Come in to speculate on Luna Coin alone, there are 9,658 accounts, accounting for about 3%.

  • What makes most people dare to buy when the price goes down?

The numbers in this study reflect that the behaviors that occur may come from two main subjects.

First story: Too confident because the price is attractive.

What has attracted many people to buy is the price of Luna Coin, after the price of Luna has reached its lowest point (as of May 13, 20), when it resumes trading after it has Temporary suspension of trading The price of Luna has soared to around 400 times (as of May 14, 65) from its lowest point.

Seeing the adjustment of the price that has increased considerably causing a large number of people to buy Because he thinks that he can profit from times when the price is highly volatile.

This type of behavior may be explained by “Behavioral biases‘ of traders who often find that “having too much self-confidence (Overconfidence)” That is, foreseeing potential profits. higher than it is while underestimating the risk of loss

Story 2: Clinging to past beliefs

Another factor is Many people believe that Luna’s project was historically a top 10 coin with the most market capitalization in the world. As well as the founder’s announcement of a recovery plan to salvage Luna’s situation, it has led to a large number of new traders who have never bought Luna. Found a return at a loss of 96%.

By summarizing the profit/loss of the account of each group of traders studied in the asset trading center. Digital Thailand Found that the net loss is about 980 million baht ever.

From this study, it can be seen that traders in the digital asset market aim for short-term speculation. including investment according to the current and focus mainly on the high return numbers Ready to accept losses in exchange for the opportunity to earn very high profits in a short time. which at times may lack investment diversification and assess the risks

However, the results of this research “No wonder” compared to the survey results of interest in digital assets. of Thai people in researchReveal the results of the survey of interest in digital assets. Of the Thai people, 46% were speculative.” As published on May 17, 65, it was found that 46% of people entering the crypto industry hoping to get a substantial return

While the overall picture, most investors do not have much knowledge of digital assets, so they tend to invest according to the advice of friends. Including investing in Influencer Youtuber or famous guru. Who is an expert at the beginning, most people who come to invest in the hope of passive income, but when they see that the profit is good Easy to get money, so start investing more, even knowing that the investment assets have high risk.

It is therefore not wrong to call this “Luna” a “lesson” situation, warning investors hoping to make huge profits in a short time from crypto. to be more careful

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Reference: SEC Research Department, SEC

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