A possible US default, which may take place as early as June in what would be a first in the country’s history, will severely damage already shattered US credit and financial system, while push more international investors to shift to other countries’ assets, experts said.
The South Korean government is set to come good on its promise to launch a new regulatory agency that will govern the domestic crypto sector in the wake of what it calls the “terra (LUNA) incident.”
By Lee Kyung-min
The U.S. GameStop saga is unlikely to materialize in Korea, due largely to a tighter financial market system where small retail investors have limited influence in spiking up share prices through short-selling, according to market watchers, Wednesday.
The much-politicized investment method is widely used by foreign and institutional investors seeking profit after selling borrowed shares at a lower price in a bear market at the expense of retail investors.
Melvin Capital Management, a New York-based hedge fund that bet against the American consumer electronics and gaming merchandise retailer, lost over half its assets after the shares skyrocketed 2,000 percent in January, driven by organized purchases from small retail investors seeking to dry up short-selling funds. The firm s assets dipped to $8 billion as of January, from $12.5 billion in early 2000.