The cryptocurrency market has seriously damaged confidence in cryptocurrencies and blockchain in recent days. Terra (LUNA) and the UST event After that, investors also changed their comments about the cryptocurrency markets. Today came a negative report from Morgan Stanley, one of the world’s largest investment banks.

Morgan Stanley, which published its new investigative report, of decentralized finance, NFTs and stablecoins pointed out the serious damage suffered. Banking analysts stressed in the report that the 40% drop in Bitcoin since April should no longer be associated with stock markets. The analysts’ statement read as follows:

“Decentralized finance seriously harms”

Exaggerated and supposedly high-yield decentralized finance and cryptocurrency-backed stablecoins are currently attracting crowds. cause serious harm† This shows us that the high prices are actually generated by considerable speculation and that the actual demand from users is very limited.”

The report also addressed metaverse countries and NFTs and explained the rationale for investing in such assets.the belief that it will be sold to other people at a higher price;‘ explained. Analysts also referenced the recent collapse of the IHL, making the following statements:

“Crypto-backed stablecoins have become an important part of the high-yield system built within decentralized finance. In contrast, the latest event led to an increase in market uncertainty and instability. People are starting to re-evaluate at what level cryptocurrency prices should actually be traded. .

Stanley also shared that bank customers also asked if the UST event would reflect on financial markets.