KODEX 200 Futures Inverse 2X, Down 58.05% From Start of Year
"Funeral Service and Personal Rehabilitation Ads Appear in Community"
As the KOSPI surpassed the 6,000-point level for the first time in history, it became a hot topic online when news spread that a user in a community for investors betting on a market decline with so-called "Gopverse" products was being served advertisements for funeral service plans and personal rehabilitation.
On the 25th, a post titled "Why are there funeral plan ads in the Gopverse chat room?" was uploaded to an online community. Products that generate profits when the stock index falls are called "inverse" products, and those that seek double leverage on top of that are referred to as "Gopverse." When the KOSPI soars as it is now, inverse products incur heavy losses. In the case of "Gopverse," which is effectively a leveraged product using borrowed money, there can even be situations where positions are forcibly liquidated, making it impossible to recover losses.
When funeral service company advertisements appeared in a community where people investing in such Gopverse products gather, online users reacted by saying, "They will take care of everything so that your final journey is comfortable," "If you've been holding Gopverse all this time instead of trading it short-term, you really do need a funeral plan," and "There can't still be people who are holding Gopverse for the long term... right?"
According to the Korea Exchange, individual investors made net purchases of 993 billion won worth of the "KODEX 200 Futures Inverse 2X" exchange-traded fund (ETF) from the beginning of this year through this day. However, as the domestic stock market has continued to show strong gains day after day, KODEX 200 Futures Inverse 2X has recorded a loss rate of 58.05% since the start of the year.
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