Key facts:
The massive sales of LUNA and UST led to their being worth pennies on the dollar.
This caused terrible money loss for some traders, who take encouragement from the community.
The extreme drop in price of the LUNA and TERRA USD cryptocurrencies, to almost zero, caused the people who had it stored to have lost large amounts of money. Reason for which those affected raised their voices on Twitter, commenting on how this situation has ruined their financial plans.
One of the most striking stories is that of ZahraBerrada1, who shared in the social network he lost the money from the sale of his house. “My husband and I sold our house and we did it through LUNA. I’m trying to digest if this is happening or just a nightmare,” she said.
Right now, LUNA is worth USD 2.2, recovering somewhat following announcements from its developer after touching 90 cents today, while it was worth $120 a month ago, according to CoinMarketCap. As CriptoNoticias reported, this affected the UST stablecoin that had a 1:1 parity with the US dollar and came to step on the USD. 30 pennies today.
One affected by the price drop, named UfcEllis, commented: “Man, I was about to open my first bakery. I had my last $30,000 in LUNA hoping I could make some money off of it and buy the best gear. Now the bakery will have to wait another 2-3 years.”
A phrase that has resonated a lot in the community due to the fall of LUNA and UST is: “I lost my life savings”. Proof of this is the user fy-crypto, who express this reality very distressed and saying that he does not feel well. This was also revealed by another tweeter, called Crypto2588, who pointed to the creators of both cryptocurrencies as the main culprits: “You broke thousands of investors.”
Something similar manifested a young man under the alias crypto_birb: “I lost almost all my life savings. I don’t use leverage often and I broke that rule because I saw the LUNA shorts as free money. I lost $300,000 at 25. I’m beyond pissed off.” To paint the harrowing picture of him, he shared that he has been receiving text messages from his trading friends telling him, “At least you’re alive. That’s all that matters”.
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Another young man nicknamed ashsbreal confessed that he lost all his money in LUNA and he can’t face his parents because that the savings were theirs. This situation puts those affected between anguish and despair, as cryptnamese showed, saying: “I lost everything! Refund please! I hope I have a kind heart, for people like me, because of the big scam.”
Although many are affected, the experience is not shared by all. Some investors managed to sell before the market fell completely. An example of this is the trader Eamplus, who counted who sold his USTs with only a 10% loss. And it is precisely the massive sales caused the prices of the cryptocurrencies of Terra go down abysmal.
Community encourages those affected by the price drop of UST and LUNA
The price drop of the altcoin LUNA and the stablecoin UST has generated a wave of comments on social networks encouraging those who have lost their money there. Even, in an attempt to give strength, many have recounted their past experiences losing their savings with cryptocurrencies. Something that several applauded because, as said the user NicoDelCampo, traders usually count only what they win and not what they lose.
In order to encourage those affected, the ThinkingUSD account tweeted: “I know it feels like the world is ending and you’re at rock bottom, if you lost all your LUNA/UST money and maybe even lost some of your friends or family money, investors, whatever. I don’t know who has to see this, but it will be fine. I have survived massive reductions.”
The trader commented that he has lost 80% of his savings in cryptocurrency crashes in the past and has managed to overcome it. “In the accident in March 2020 I saw myself go from 8 figures to what felt like 0 in a few hours,” he said. But he clarified that the point of telling that is that, even if everything looks black and they continue to fall, you have to keep fighting because you get ahead. Messages similar to this tweeter were shared by different cryptocurrency enthusiasts, who advise those affected to be careful in their investments for the next time.
User Indiana_rocks said: “This is a massive learning curve for greedy people: don’t risk what you can’t afford to lose.” On this, InvestorRecon added: “People who bet their life savings on a speculative asset are the ultimate bubble, an extremely difficult lesson to learn.”
The situation leaves much learning to traders and encouragement to continue. A key warning when buying cryptocurrencies, as well as when making any investment, is to calculate potential losses in advance.. This should always be done beforehand to ensure that one is prepared to face such a possible scenario. In this way, the risk in trading is managed.
On this, Cryptolegacy20 said: “Money comes and goes, but life is unique. You are unique and precious. With hard work and consistency you can earn money. If you fall to your knees, you need to stand up and fight for the future of your family for your beloved children. Giving up is not an option!”
Along these same lines, the trader tlagomi commented what has survived ETH’s dwindling from $1,500 to $80 in 2018. It also went from LUNA in 2021 from USD 20 to USD 3. «And now this last one, which turned out to be the first time I was liquidated. This space is all about mental toughness. That sinking feeling in your stomach builds character », she concluded giving strength.