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In the past few weeks, the crypto industry has been shaken by a $40bn wipeout with many so-called “stablecoins” proving themselves to be anything but.

The problems started with Terra and Luna, a linked set of digital tokens popular with crypto traders, but the growing fallout has hit the value of more established cryptocurrencies such as bitcoin.

On the Money Clinic podcast this week, presenter Claer Barrett talks to two young investors who have lost significant sums of money dabbling in unregulated assets.

In Bangalore, 29-year-old Subbaiah could only watch in horror as his $7,000 crypto holdings were reduced to a few hundred dollars following the collapse of Luna. Not only has he lost his life savings, he still has to repay money he borrowed on credit cards to boost his trades.

In London, 34-year-old listener Dan has seen thousands of pounds wiped off his holdings in bitcoin and ether. Although he had limited his stakes to a small percentage of his overall portfolio, the crash has shaken his faith in crypto’s long-term investment potential.

Scott Chipolina, the FT’s digital assets correspondent, and Ilan Solot, a partner at crypto group Tagus Capital, discuss what the future could hold for crypto as an asset class, what more could be done to protect consumers — and the steps investors can take to protect themselves.

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