LUNA – United States Dollar (CRYPTO:$LUNA), ($UST) – Terra Crisis: Broken Family Ties, Torn Dreams
With last week’s death spiral involving Terra’s collapse wiping out $40 billion of investors’ money, traders have been rocked.
The Terra ecosystem suffered a major blow around May 9 that caused (CRYPTO:LUNA) to fall 100% and the stablecoin TerraUSD (CRYPTO:UST) to lose its peg to the US dollar, at a price of 0, $00013 at the time of writing, according to data from Coinmarketcap.
Benzinga spoke to a few investors who had bet on Terra LUNA, most of whom felt they had lost hope of a boost to their savings.
Hitesh Malviya, the founder of venture capital firm iBC Capital, said he bought LUNA at $4 a day before it was delisted and invested an amount he could afford to lose.
“I have no hope of recovery because my purchase price was too high. The supply has increased significantly, and even after the execution of the stimulus plan, its price can no longer reach $1. So it is better move on,” he added.
Another investor, who lost a substantial amount, said, “It doesn’t matter whether LUNA continues to trade or not, because it has reached an almost irreversible price even though there is a miraculous recovery of the Terra network. While the token may have recovered 200% of its lows, people who invested between $80 and $100 will never recoup their losses.
He claimed to have lost 50% of his total portfolio due to investments in LUNA and said the whole fiasco should be a lesson for investors to invest in bluechip tokens like Bitcoin and Ethereum as they are safer in the long run. term.
Another investor in his 40s, who was hoping to catch a falling knife when LUNA fell between $3 and $4, says he diluted long-term investments of other tokens saved for his daughter’s wedding and that all his savings evaporated in a matter of 48 hours.
“I lost around Rs$19,000, all of which was saved for my daughter’s wedding. The biggest mistake of my life was watering down the money into bluechip tokens in which I was earning a decent amount with staking. I haven’t even told my wife about it. I have absolutely no idea what will happen when she finds out all our money is gone,” he said.
Samina Haidry, another investor, says she too has reached a point of no return.
“When the crypto market was down, my investment had dropped to one-fifth of the initial investment. Luna, however, witnessed a crash rarely seen in the crypto markets. biggest crypto, I trusted and decided to sell all my coins and invest in Luna, expecting it to give huge returns.I haven’t gotten over the shock yet to see my portfolio drop to zero from about $5,000 just a week ago,” she said.
Experts say LUNA tanking is a rare but plausible black swan event and investors should learn from the event.
“Always understand that when we invest we are taking a risk and we have to be mentally prepared for that. The second – review and cover – always. We are sometimes convinced by a particular company and invest fully or almost fully in this company. A fatal mistake,” said Raj Kapoor, chief advisor at Acryptoverse, a crypto and blockchain advisory firm.
He adds that greed is another factor that investors should be wary of. “People who bought Luna earlier in the year had almost 3x already in April, but they probably didn’t take profits hoping that the black swan stock would come back a few more times in the next few months,” says- he.
Historical data has proven that the market is recovering and even tending to reach new highs after suffering a bloodbath. Investors should therefore learn lessons to avoid future losses.