- A prominent crypto figure has criticized South Korea’s National Pension Scheme for investing in Coinbase.
- The critic argued the pension fund undertook such an investment despite Coinbase’s involvement in Terra Luna.
- However, a researcher claimed the $19.9 million invested is a paltry sum, accounting for 0.0002%.
A prominent figure in the crypto community has called out South Korea’s National Pension Scheme, criticizing the agency for its investment adventure with the leading U.S.-based crypto exchange Coinbase.
In a recent tweet, X user “Parrot Capital,” with a significant following on the platform, argued that the South Korean pension fund undertook a risky investment endeavor by committing multi-million dollars in the share of Coinbase.
The foundation of Parrot Capital’s criticism was that Coinbase had backed the failed South Korean crypto project Terraform Labs (TFL). TFL was the project team behind the collapsed cryptocurrency LUNA and UST stablecoin.
In the tweet, the critic included a screenshot of a 2021 report confirming that Coinbase and Galaxy had ‘bet’ $25 million on decentralized finance using Terra stablecoin. The report mentioned the fund was to help Terraform Labs build more apps.
However, with the new report disclosing South Korea’s National Pension Scheme buying Coinbase shares worth $19.9 million, Parrot Capital argued South Korea has failed to take lessons from the LUNA fiasco.
He expressed concern that the pension fund was risking the life savings of senior citizens by investing in another supposedly risky crypto business. Parallel to this, Parrot Capital mentioned, “The crypto degeneracy is strong in South Korea, which North Korea is all too happy to take advantage of, too.”
Meanwhile, crypto researcher Scott Hill claimed that the $19.9 million pension fund invested in Coinbase is a paltry sum, accounting for 0.0002%. As a result, Hill claimed there was no cause for alarm. However, Parrot Capital pointed out that it is “still a waste.” He believes it was wrong to invest in a company that has recently been under regulatory scrutiny.
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