Throughout the week in the world of cryptocurrencies there had been talk of a hypothetical collapse, of a possible Lehmann Brothers.
The alarms went off when TerraUST, the stablecoin to which the Luna cryptocurrency was linked, lost parity with the dollar. Far from recovering values, these days the cryptocurrency has lost up to 99% of its price and has dragged other virtual currencies with it. The collapse of Luna has led to the liquidation of 30,000 million dollars in seven days.
Luna was one of the top ten most influential cryptocurrencies and it is estimated that close to 600,000 people worldwide were users. When the loss of value was confirmed in one of the most relevant forums and in the official Twitter profile, the networks caught fire with messages against the celebrities who had encouraged them to invest in cryptocurrencies and with texts warning of the suicide of a dozen people. relatives or acquaintances.
Some of those affected claimed to have lost “more than $450,000.” “I can’t pay the bank. Soon I will lose my house. I will be homeless,” said one user on the forum.
Given the barrage of worrying suicide messages, the moderators of the forum have set the different help numbers in the chat to prevent deaths for this reason in each country. In the message they comment that what happened is “one of the reasons why you should not invest money that you cannot afford to lose.” “Do not invest the money you need to live the next few weeks, months and even a year. This is a very volatile market that nobody knows what is going to happen,” they warn.
After this they offer the different help lines: “If you feel the need to talk to someone, consider the national help line. They will listen to you and give you unbiased opinions. There is always some kind of solution for all problems and sometimes we need hear it from someone else. You just have to reach out and not give up.” Suicides cannot be attributed to a single cause but to several factors and it is necessary to offer people who are going through a vital crisis listening and alternative solutions to overcome it.
The emergency numbers they provide in Spain are: 914590050 and 112.
On the official Terra Twitter account on Thursday they announced that they were stopping producing blocks, but on Friday they confirmed that production was restored and encouraged users to “bridge off-chain assets with their native chains.”
Luna’s crash has affected other cryptocurrencies. Losses among investors are in the billions and few dare to put a price on the bottom of the declines. On Wednesday, Bitcoin plunged more than 11%, although by the end of the afternoon it softened the trend and almost managed to recover $30,000.
From Terra they have affirmed that they are carrying out an “autopsy” of what happened that they will publish as soon as possible. “These are tremendously difficult times for everyone affected. Feelings are still raw. Please stay safe,” they tweet.
Terra’s creator, Do Kwon, has invested $750 million in bitcoin to try and maintain Terra’s peg and fix the situation. Kwon, who revolutionized the crypto world with a seemingly stable currency, has stated on his Twitter account that he is “determined to work with each of you to overcome this crisis.”
Conforms to The Trust Project criteria