Terra Collapse has caused a drop in Asian cryptocurrency stocks

The collapse of the Terra USD stablecoin caused a stampede out of several of the digital-asset market’s most popular tokens, causing Asian shares tied to cryptocurrencies to fall.

Hong Kong-traded BC Technology Group Ltd. fell as much as 7.5 percent, putting it on course for its lowest closing in more than four years. Monex Group Inc. of Japan, which operates the TradeStation and Coincheck platforms, fell as high as 8.6 percent, while Woori Technology Investment Co. of South Korea fell 6.6 percent.

“It is a very nervous time in crypto markets following the collapse of the controversial stablecoin UST (based on Terra blockchain) and as the majority of institutional crypto investors that invested last year are now losing money,” Ed Moya, a senior market analyst at Oanda, wrote in a note.

Avalanche, a darling of decentralized finance, fell roughly 37% on Wednesday, while Solana fell 33%. Bitcoin dropped 8.4 percent to $28,402.78, its lowest level since December 2020. All three tokens recovered in early trading on Thursday.

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