The price of the cryptocurrency Terra (LUNA) fell by more than 99 percent, destroying the wealth of crypto investors.
Terra, which ranked among the top 10 most valuable cryptocurrencies, fell below $ 1 on Wednesday, peaking close to $ 120 last month.
Most of the losses were realized at night, as the price fell by 98% in just 24 hours.
The dramatic collapse means that its market capitalization has fallen from over $ 40 billion to just $ 500 million, leading to unprecedented losses for investors in a leading cryptocurrency.
“I lost all my savings,” wrote one member of r / TerraLuna sub-Reddit. “I bought Luna for $ 85, I don’t know what to do.
Another wrote that they lost $ 15,000 after failing to sell their holdings for a substantial profit when they traded over $ 100 last month.
“We had to withdraw when it was $ 100, then I would raise $ 25,000,” wrote a Reddit user No-Forever. “But I became greedy, hoping to get more money so I could afford at least an advance payment for a house for my family. I guess then there is no house and no savings.
The moderators of the forum, which has more than 44,000 members, posted a post with helpline numbers at the top of the page after users expressed concern about the consequences of the crash. “I lost over $ 450,000, I can’t pay the bank,” a forum user wrote. “I will soon lose my home. I will become homeless. “
The leading cryptocurrency exchange Binance temporarily stopped withdrawals in the Terra network (LUNA) at one point, which means that even those who wanted to sell were unable to do so.
The Cayman Islands-based exchange cites “a large volume of pending withdrawal transactions … caused by slowness and congestion.”
Terra’s collapse comes amid a slump in the wider crypto market, which has seen Bitcoin fall more than 50 percent from its record high of nearly $ 69,000 in November, but LUNA’s death is complicated by problems with Terra’s dollar . fixed stablecote UST.
The price of Terra (LUNA) fell in May 2022
(CoinMarketCap)
Earlier this week, the UST broke away from the dollar and fell to $ 0.29. The Luna Foundation Guard (LFG), which acts as steward for UST, is currently working to raise more than $ 1 billion to resume the algorithmic stablecoin, although many investors believe the project is over.
To Kuon, who founded the creators of Terra Terraform Labs, tweeted on Tuesday: “Close to the announcement of a plan to recover $ UST. Hold it tight.”
He followed this with a thread on Twitter on Wednesday, asking for patience from the community.
“I understand that the last 72 hours have been extremely difficult for all of you – know that I am determined to work with each of you to overcome this crisis and we will build our way out of it,” he wrote.
“Terra’s ecosystem is one of the liveliest in the crypto industry, with hundreds of passionate teams building categories defining applications within … Terra’s return to form will be a must-see.”
If you are experiencing suffering and isolation or struggling to cope, the Samaritans offer support; you can talk to someone for free on the phone, confidentially, at 116 123 (UK and ROI), send an email to jo@samaritans.org or visit the Samaritans website to find details of your nearest branch.
If you live in the United States and you or someone you know needs mental health help right now, call the National Suicide Prevention Hotline at 1-800-273-TALK (8255). The hotline is a free, confidential crisis hotline that is available 24 hours a day, seven days a week. If you are in another country, you can go to www.befrienders.org to find a phone line near you.
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