Terra (Luna) is a popular cryptocurrency that is facing a dramatic downfall in its valuation, from $400 billion to around $500 million, in just a few hours. This disastrous clash is demotivating its investors as they have invested their life savings which are going to sink in just ago. The crash of Terra (Luna), which was once ranked among the top 10 valuable cryptocurrencies, has fallen badly on the crypto industry. Several investors are now living in terror of becoming homeless after this tragic happening.
Terra (Luna) had touched the heights of about $120 last month. But with the recent crash, the price has dropped below $1.
“An investor had lost all his life savings. Had bought Luna at $85, and now they are not sure what to do,” a Terra investor spoke on the Reddit community forum. These were the wordings of just a single investor. Due to the sudden collapse of Terra Luna, several other investors have lost thousands of dollars.
For example, investors who were trying to get rid of the crypto coin when the valuation was more than $100 last month lost $15,000. Another investor shared that he became greedy, hoping to get more money so that he could afford a downpayment for a house for his family.
Many other investors are sharing their upsetting stories on social media platforms, especially Reddit, where there is a dedicated community discussing investments in Terra.
On the Reddit forum, another investor pinched his loss of more than $450,000. “he cannot pay the bank,” he mentioned. Another user wrote in an IANS report,” he will lose his home soon. He will become homeless.”
Meanwhile, crypto platforms have started taking initiatives in response to the failure. For example, Binance, the world’s biggest crypto exchange, has temporarily suspended withdrawals on Terra.
Why led to the Terra Luna Crash?
Terra Luna’s crash started occurring when the cryptocurrency’s algorithmic-based Stablecoins TerraUSD, pegged in front of the dollar, started plummeting. The fall in TerraUSD may have led to a large-scale selling of Terra Luna, which resulted in a price crash.