One of the most prominent figures within the crypto community recently called out South Korea’s National Pension Scheme. He criticized the agency for its investment venture with Coinbase, one of the largest crypto exchanges in the United States.
Summary
- Parrot Capital criticized South Korea’s National Pension Scheme for investing in Coinbase
- The critic argues that the pension fund undertook the investment despite the exchange’s involvement with the Terra (LUNA) and TerraUSD (UST) projects
- A researcher notes that the $19.9 million investment is a paltry sum, accounting for just 0.0002%
The National Pension Service (NPS) Invests $19.9 in Coinbase
South Korea’s National Pension Service, which is one of the world’s largest pension funds, invested millions in Coinbase during Q3 of 2023.
The National Pension Service (NPS) bought 282,673 shares in the company during the third quarter of the year, and this investment has grown in value since the purchase. The investment is now worth $27.7 million, based on Coinbase’s latest recorded close of $98.15, according to TradingView data. According to an official SEC filing, the NPS acquired its Coinbase stock batch for $19.9 million, which implies that the fund’s profit jumped by $7.8 million or 39%.
Based on news by the local agency, News1, the recent Coinbase investment by South Korea’s public pension funds marks the first time the company bought stock from Coinbase.
Parrot Capital Critiques This Investment
In a recent tweet, X user “Parrot Capital” called out this National Pension Scheme, criticizing the agency for its involvement with a company that had backed the failed South Korean crypto project, Terraform Labs (TFL). This was the project team behind the now-collapsed cryptocurrencies Terra (LUNA) and TerraUSD (UST).
In the tweet, the critic included a screenshot from a 2021 report that confirmed that Coinbase and Galaxy had essentially placed a bet of $25 million on DeFi using the Terra stablecoin. The report also mentioned how the fund was intended to aid Terraform Labs in building more applications.
In the new report disclosing South Korea’s National Pension Scheme buying Coinbase shares worth $19.9 million, Parrot Capital argues that South Korea has not taken a lesson from the LUNA situation.
Researcher Scott Hill Makes Massive Revelation
Crypto researcher Scott Hill, on the other hand, made a revelation when he claimed that the $19.9 million pension fund that was invested in Coinbase is a paltry sum. It accounts for just 0.0002%.
Consequently, Hill then claimed that there was no cause for alarm. Parrot Capital pointed out that it’s “still a waste” and that he believes it was wrong for them to make an investment in a company that has recently been under regulatory scrutiny.
