A famous YouTuber registered a 3 million dollars loss; another user explained he had lost his grandmother’s inheritance, and many others declared themselves bankrupt after Terra hit the ground.

This week, the crash of the Terra ecosystem has been possibly the most impactful moment in the crypto environment.

The USD Terra (UST) algorithmic stable token, expected to keep a parallel cost to the US dollar, lost its parity and crashed to low rates registered at USD 0.3. The situation generated a negative impact on the cost of LUNA, Terra’s native digital asset, which slid more than 90% in the middle of the week. All in less than 72 hours while the rest of the crypto market experienced a massive bloodbath.

Amidst the situation, various users in the community shared their personal investment experiences, some more tragic than others. Others came to encourage the most disappointed, and the memes and jokes appeared everywhere.

UST had presented traces of volatility over the weekend, encouraging the entity supporting the project to take action and restore parity. However, the collision came later, on Wednesday, when the progressive instability of the stable coin hit its sister token, LUNA, with a blow. UST works through a LUNA mint-and-burn procedure to keep its attachment to the dollar, a structure labeled as solid but this week showed its weak points.

Terra’s cryptocurrency suddenly crashed and descended from 100 to 0 in a blink of an eye. According to data registered by Coinmarketcap, LUNA traded as high as $20 by Wednesday morning, and before ending the day, it crashed down to low rates reported at  $1.

The crash that LUNA experienced positioned the currency below the top of the list, as its market capitalization crumbled down from $30 billion to less than $500 million.

Another investor highlighted that he had lost at least $15,000 when LUNA crashed. The anonymous user expressed high hopes for the project and was saddened by the incident. I guess there is no house or savings then, he spoke, adding that he was at least grateful to have an understanding husband and two adorable children.

Several members exposed similar situations. In an entry that consulted publicly on the losses, more than a dozen investors expressed how they lost more than USD 10,000 after the recent crash. Among them, many said they registered millionaire damages after the crash.

Terra Community Mourns

Some celebrities lamented the crash. JJ Olatunji, also named KSI, a famous YouTuber based in the UK, explained to his more than 7 million followers on Twitter that he experienced how his multi-million investment in LUNA vanished in a matter of hours. He also acknowledged the loss in a post on his Crypto Twitter account.

The regrets of the community were not scarce. Various forum members highlighted that the losses had left them with significant struggles, ranging from bank debt to losing a home and even bankruptcy. In fact, among the most extreme cases, some users expressed a desire to die.

By: Jenson Nuñez

LEAVE A REPLY

Please enter your comment!
Please enter your name here