The price of the Terra (LUNA) cryptocurrency has fallen more than 99 percent, thus wiping out the fortunes of cryptocurrency investors.
Terra, which ranked among the top 10 most valuable cryptocurrencies, fell below $1 on Wednesday, having peaked at $120 last month.
Most of the losses occurred overnight, with a 98 percent drop in price in just 24 hours.
The dramatic drop meant its market capitalization fell from more than $40 billion to just $500 million, resulting in unprecedented losses for investors in one of the leading cryptocurrencies.
“I lost all my life savings,” wrote one member of the r/TerraLuna sub-Reddit. “I had bought Luna for $85, I’m not sure what to do.”
Another wrote that he had lost $15,000 after failing to sell his shares for a substantial profit when trading above $100 last month.
“I should have sold when I was at $100, then I would have made $25,000,” Reddit user No-Forever wrote. “But I became greedy hoping to get more money so I could at least make the down payment on a house for my family. I guess there will be no house or savings, then.”
Some members shared suicidal posts after seeing their possessions lose value overnight, while others offered support by sharing links to suicide prevention hotlines around the world.
“I lost more than $450,000, I can’t pay the bank,” wrote one user of the Terra forum. “I will lose my home soon. I will be left homeless. Suicide is the only way out for me.”
Moderators of the forum, which has more than 44,000 members, set up a post with helpline numbers at the top of the page. Terra (LUNA)’s share price plummeted in May 2022</p>” data-gallery-length=”2″ height=”839″ i-amphtml-layout=”responsive” layout=”responsive” on=”tap:inline-image-gallery,inline-image-carousel.goToSlide(index=1)” role=”button” src=”https://static.independent.co.uk/2022/05/11/16/Terra%20luna%20price.jpg?quality=75&width=982&height=726&auto=webp” srcset=”https://static.independent.co.uk/2022/05/11/16/Terra%20luna%20price.jpg?quality=75&width=320&auto=webp&crop=1120:839,smart 320w, https://static.independent.co.uk/2022/05/11/16/Terra%20luna%20price.jpg?quality=75&width=640&auto=webp&crop=1120:839,smart 640w” tabindex=”0″ width=”1120″>
The price of Terra (LUNA) plummeted in May 2022
The main cryptocurrency exchange platform, Binance, temporarily suspended withdrawals on the Terra (LUNA) network at a certain point, meaning that even those who wanted to sell could not.
The Cayman Islands-based exchange cited “a large volume of pending withdrawal transactions… caused by the slowness and congestion of the network.”
Terra’s fall comes amid a recession for the broader cryptocurrency market, in which Bitcoin has fallen more than 50 percent from its all-time high of near $69,000 in November, however, LUNA’s plunge has been compounded by problems with Terra’s terra-linked stablecoin, UST.
Earlier this week, the UST disassociated itself from the dollar and fell to a low of $0.29. Luna Foundation Guard (LFG), which acts as UST’s administrator, is currently looking to raise more than $1 billion to rescue the algorithmic stablecoin, though many investors believe the project is finished.
Do Kwon, who founded Terra’s creator Terraform Labs, tweeted Tuesday: “Close to announcing a recovery plan for $UST. Hold on.”
He continued this with a Twitter thread on Wednesday, asking the community for patience.
“I understand that the last 72 hours have been extremely hard for all of you. Know that I am determined to work with each of you to overcome this crisis, and we will build a way out of this,” he wrote.
“Terra’s ecosystem is one of the most vibrant in the cryptocurrency industry, as there are hundreds of passionate teams creating category-defining applications within… Terra’s return will be a sight to behold.”
If you have feelings of distress and isolation, or are struggling to cope, The Samaritans offers support; you can talk to someone for free by phone, in trust, at 116 123 (UK and ROI), email [email protected] or visit the Samaritans website to find the details of your nearest branch.
If you reside in the U.S. and you or someone you know needs mental health assistance right now, call the National Suicide Prevention Helpline at 1-800-273-TALK (8255). The Helpline is a confidential, toll-free crisis hotline that is available to everyone 24 hours a day, seven days a week. If you are in another country, you can visit www.befrienders.org to find a helpline near you.