Young Investors in Panic Mode after TerraUSD, Luna Crypto Crash
The shocking implosion of the TerraUSD and Luna crypto-currencies (crypto) threw many young investors into a panic, some of them saying their entire assets were blown up or even leaving suicidal messages.
 
In a crash starting a week earlier, the once bullish TerraUSD and sister coin Luna had lost almost all their value as of Tuesday, sending shock waves across the world.
 
TerraUSD, also known as 'stablecoin,' and its digital coin counterpart, Luna, had been trading in the 10 cent-range and nearly at zero as of Tuesday, respectively, registering more than 99.99% falls from their highs and wiping out nearly US$38 billion of investors' money in a week, according to data by CoinMarketCap.
 
South Korea's financial authorities said about 280,000 investors were believed to be holding about 70bn (billion) Luna coins as of late, reports Yonhap news agency.
 
The sudden meltdown dealt a crushing blow to many tech-savvy young investors who betted big on the algorithmic cryptos, seen largely as experimental, amid the recent boom in crypto assets.
 
A 28-year-old businessperson, surnamed Kim, said his dream of affording his own home was shattered after he  lost nearly 40mn (million) won (US$31,510) in the crypto collapse.
 
"I was planning to build a jeonse deposit (a key money deposit for home lease) to leave my parents' home without their assistance. Now I am barely able to afford a monthly rent," Mr Kim was quoted as saying.
 
The market crash left a 30-year-old man, surnamed Yang, heavily indebted after losing nearly half of 50mn won he borrowed for investment.
 
"I was captivated after seeing people around me succeed in turning some millions of won into some hundred million won and dived into investment," he said.
 
"As soon as I started, my investment swung to losses, and now I am in anguish about my decision."
 
Similar accounts of massive investment losses were shared on online communities, with some investors even leaving messages hinting at plans of suicide.
 
CEO Do Kwon of Terraform Labs, the firm behind the troubled cryptocurrencies, earlier said in his blog post his firm is working on ways to keep its Terra blockchain and ecosystem going, despite the collapse of its cryptocurrencies.
 
Investors were, however, sceptical and some were planning to take legal action against Terraform Labs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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