South Korea Pension Fund Faces Backlash for $19.9M Funding in Coinbase

• A outstanding crypto determine has criticized South Korea’s Nationwide Pension Scheme for investing in Coinbase.
• The critic argued the pension fund undertook such an funding regardless of Coinbase’s involvement in Terra Luna.
• Nevertheless, a researcher claimed the $19.9 million invested is a paltry sum, accounting for 0.0002%.

A outstanding determine within the crypto group has known as out South Korea’s Nationwide Pension Scheme, criticizing the company for its funding journey with the main U.S.-based crypto change Coinbase.

In a current tweet, X person “Parrot Capital,” with a big following on the platform, argued that the South Korean pension fund undertook a dangerous funding endeavor by committing multi-million {dollars} within the share of Coinbase.

The inspiration of Parrot Capital’s criticism was that Coinbase had backed the failed South Korean crypto mission Terraform Labs (TFL). TFL was the mission group behind the collapsed cryptocurrency LUNA and UST stablecoin. 

Within the tweet, the critic included a screenshot of a 2021 report confirming that Coinbase and Galaxy had ‘guess’ $25 million on decentralized finance utilizing Terra stablecoin. The report talked about the fund was to assist Terraform Labs construct extra apps. 

Nevertheless, with the brand new report disclosing South Korea’s Nationwide Pension Scheme shopping for Coinbase shares price $19.9 million, Parrot Capital argued South Korea has did not take classes from the LUNA fiasco.

He expressed concern that the pension fund was risking the life financial savings of senior residents by investing in one other supposedly dangerous crypto enterprise. Parallel to this, Parrot Capital talked about, “The crypto degeneracy is robust in South Korea, which North Korea is all too glad to reap the benefits of, too.”

In the meantime, crypto researcher Scott Hill claimed that the $19.9 million pension fund invested in Coinbase is a paltry sum, accounting for 0.0002%. Consequently, Hill claimed there was no trigger for alarm. Nevertheless, Parrot Capital identified that it’s “nonetheless a waste.” He believes it was mistaken to put money into an organization that has just lately been beneath regulatory scrutiny.