Investors robbed in crypto explosion, holdings fell by 99.98%

There is a cryptocurrency called Luna. It has fallen 99.98 percent in a week. Fans of Luna call themselves 'lunatic' (ie crazy) and according to the stories going on in the media, there are many Indians who have invested in it. On May 5, 2022, if the holding of its fans was one lakh rupees, then now they can buy only one samosa with that money.

There is an uproar on TV about the loss of all cryptocurrencies including Luna. However, I absolutely do not believe that this loss is big. Actually, this is not even a shocking loss. This is exactly what should have been expected from the absurdity of the crypto name. Much more could look like this in the coming days and weeks. Meanwhile, the only hope is that due to the tax structure for cryptocurrencies put in this year's budget, fewer Indians will be wasted by crypto than before.

These investors opted for a marginalized option like Luna rather than a 'conservative option' like bitcoin. What is even more strange is that even today many people are saying that because the price of crypto has fallen so much, now its value has become better than before. This is a completely distorted form of the term 'value' used in investments. An investment which has no economic basis has no 'value' at all.

There is no logical basis behind investing in cryptocurrencies. Price is the only way to measure their value. If the price itself drops, you cannot calculate its value in any other way. Investing in this is just gambling.