The real-life consequences of the collapse of two major stable coins are being played out on social media.
TerraUSD lost its peg to the U.S. dollar last week and has dropped to as low as 30 cents. Between Tuesday night and Wednesday morning, Luna lost 98% of its value. The dollar value of UST and Luna was not recovered as of Wednesday.
There are links to help lines around the world, including the National Suicide Prevention Lifeline, thanks to a pinned post on the U/Terra Luna forum.
For everyone panicking, here are some National helpline numbers.
Dozens of users in the forum have said that their investments in Luna have led them to lose thousands of dollars and their life savings.
One member of the forum, No-forever2086, said in a post that they had thought about cashing out when Luna was trading at $100 in March and early April, but held off to see if they could earn enough for a down payment on a house. They said they lost $17,000 when Luna crashed.
I believed in the project and the builders. No-Forever2086 said that they didn't get out because they got greedy and hoped it would go up more. The person's Luna purchases were reviewed by Fortune, but they couldn't verify that the screenshots were from No-Forever2056's wallet.
Even if I want to leave, I can because my luna was locked. This means that the money was involved in a protocol that offered a yield based on the token they put up.
They told Fortune that they didn't know if they would stick with the investment after Terra's losses.
Do your own research. They said to always take your initial investment back as soon as possible.
Someone wrote that they had lost more than half a million dollars.
I can't pay the bank. The user wrote that he would lose his home soon. Fortune couldn't verify the user's losses.
It's not a new phenomenon in the world ofCryptocurrencies to be sad after a financial loss, they are often high risk and high reward. Researchers who study the effects of a stock downturn say the same effects can be experienced by traders of cryptocurrencies.
While some users were distraught at the drop in Luna this week, other users replied to other members of the forum and told them that the best thing was to move on to the next project.
One user said to "sell, save the money that you can and just build up your savings." It's likely that LUNA won't be there.
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