Don’t Use All Your Money To Invest In Just One Token! A Ukrainian Invested $10,500 Of His Life Savings in LUNA, and Then Terra Crashed

A Ukrainian Invested $10,500 Of His Life Savings in LUNA, and Then the Token Crashed

A few months ago, Russia invaded Ukraine. Yuri Popovich, a resident of Kyiv, Ukraine’s capital, wanted to protect his $10,500 life savings against a currency collapse or other war-related risks.

Popovich reasoned that since the cryptocurrency market appeared to be on an upward path, he should transfer his savings into these digital tokens to preserve their worth.

Then he decided to invest in the Terra ecosystem’s LUNA.

Terra’s stablecoin UST, unfortunately, lost its peg to the US dollar earlier this month, and its value fell.  Within a few weeks of Popovich putting his life savings into LUNA, the token went into a rapid decline. A LUNA token is now worth about $0.00017 as a result of the collapse.

The fall of LUNA wiped away most of Popovich’s savings, and his LUNA tokens are now worth less than $500, according to screenshots of Popovich’s bank account seen by The Guardian.

Popovich said he stopped sleeping and dropped approximately 9 pounds, which he described as “colossal.” He told The Guardian, “I often have headaches and anxiety.” “My wife is still unaware of the loss. I’m not sure how I’m going to tell her.”

Thousands of nonprofessional investors, known as retail investors, have been burnt by cryptocurrencies in recent weeks. The precipitous decline of Terra heightened concerns in the larger cryptocurrency market, which was already reeling from increasing interest rates and tighter banking restrictions.

According to CoinMarketCap data, the global cryptocurrency market value has dropped by nearly $500 billion since Terra began to collapse in early May.

Following Terra’s crash, numerous Reddit users shared the phone numbers of suicide prevention hotlines throughout the world.

“Here I like to emphasize again, don’t invest money you need to survive/live the next weeks/months/even a year,” a user wrote. “Don’t invest in the hopes of having more next month. This is a very volatile market nobody knows what’s gonna happen.”

Billionaires were not exempt from the collapse. Changpeng Zhao, the billionaire creator of Binance, the world’s largest crypto exchange, quipped last week that he was “poor again” after the value of Binance’s LUNA assets plummeted from $1.6 billion to around $2,200.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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