The fall of Korea’s hyped crypto TerraUSD, and its token luna is the talk of media houses worldwide causing turmoil in the global crypto market.
The token luna which was priced at $5 per token has dropped to $1.20 in less than 24 hours at one point and has now recovered to over $2 per token.
The company has announced that it will issue tokens worth $100 million to investors who have lost money due to the crash. This action is seen as a move to restore some confidence in the market and also give hope to those who have lost their money in this crash.
A recent report by CNBC revealed that young investors aged 25-34 are suffering from depression as a result of their investments in the cryptocurrency market. According to the report, there was an increase in calls to suicide hotlines following the crash of TerraUSD and Luna Crypto.
The report further stated that people were calling into suicide hotlines because they were afraid they would never get back their investments made in these currencies since they had no control over them. Some even said that they had lost everything after investing in these currencies and hence could not pay their bills or rent.
One person said: “I bet my life savings on TerraUSD and Luna Crypto because I thought it was going to be huge like Bitcoin but now it’s gone and I don’t know what to do anymore! I didn’t want this kind of life!”
The fall of the terraUSD has been blamed on the fact that it was not backed by any asset. However, many investors took out loans to buy this token because they believed it would help them make money. The collapse of this cryptocurrency has caused depression among many young investors who have invested their entire life savings into cryptocurrencies and now have lost everything.
The Korean government has been working hard to regulate cryptocurrencies but the market continues to crash due to a lack of regulations and frauds like the one above mentioned by terraUSD (UST). This is not just affecting Koreans but also people across the globe who are looking for opportunities to invest in an unregulated market like cryptocurrencies.
Depression is very common at times like these when investors feel that they’ve lost all their money, which adds up to their anxiety about losing even more money. The fall of UST could cause severe consequences for young investors who are counting on risky assets like cryptocurrencies for their future earnings.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated Crypto Payment Processing firm in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.