Two major stablecoins have shaken the crypto world as they dropped steeply. Many shared their real-life consequences of the collapse onto social media.
TerraUSD (UST) lost its $1 peg to the U.S. dollar last week and has dropped to as low as 30 cents. Luna lost 97% of its value between Tuesday night and Wednesday morning. UST had still not recovered its dollar value as of Wednesday with Luna trading down more than 90% at $1.79.
A barrage of posts in the Reddit forum with pinned post on u/TerraLuna lay out the experience of dozens of users who say their investments in Luna have led them to lose from thousands of dollars to their entire life savings.
One member of the forum, No-Forever2056, said in a post that when Luna was trading at $100 in March and early April, they thought about cashing out but held off to see if they could earn enough for a down payment on a house. When Luna crashed, they lost $17,000.
“I really believed in the project and the builders in the ecosystem. I didn’t get out because I got greedy and hoped it would go up more,” said No-Forever2056, who declined to give their real name.
“Well now even if I want to get out, I can’t as all my luna was locked staking,” No-Forever2056 wrote. In other words that the money was involved in a “staking” protocol that offered a yield based on the tokens they put up, and simply could not be taken out.
They told Fortune that they wouldn’t know if they will continue with crypto investing after Terra’s losses and advised others thinking of investing in crypto to be cautious.
“Do your own research. Always take profits and take your initial investment back as soon as you make it,” they said.
Another user wrote that they had lost more than $450,000.
“I cannot pay the bank. I will lose my home soon,” the user wrote. Fortune could not verify the user’s losses.
While some users were distraught at the steep drop of Luna this week, other users found mutual help in the situation on Reddit. They replied to other members of the forum and told them that the best thing is to move on to the next project.
“Sell, save the money that you can and just build up your savings,” wrote one user. “Come back later, crypto isn’t going anywhere. Except LUNA probably won’t be there tho.”
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