- According to the Guardian, Kyiv residents wanted to protect their lives to avoid the risk of war in Russia.
- He put a total of $10,500 in Terra, a “stable” crypto token that later plummeted in value.
- Ukrainian accounts are just one of many stories of private investors being burned by the cryptocurrency crash.
Yuri Popovich thought it was a good idea at the time.
Russia was invading Popovich’s hometown of Ukraine. Kyiv residents wanted to protect their savings of about $10,500 from currency collapse or other war-related risks. said Guardian in accounts posted on Sunday. The cost of living in Ukraine in May is estimated at around $467 per person, according to Numbeo.
International Monetary Fund sounded an alarm In March, we covered how the war caused food and oil prices to rise. “Rising prices for commodities such as food and energy will further exacerbate inflation, reducing the value of income and contracting demand,” the organization wrote in a blog post.
Popovich said the cryptocurrency market seemed to be riding in the stratosphere. So, what about converting your savings into these digital tokens to store value?
The Kyiv resident’s answer, according to the Guardian, was a kind of cryptocurrency called a “stablecoin” according to the Guardian. In theory, stablecoins are backed by fiat currencies and fixed assets including government bonds or gold. this is prevent Prevents tokens from becoming too volatile.
“It is impossible and unsafe to store your funds in the form of paper money,” Popovich told outlets, which made stablecoins an attractive option.
Popovich chose a stablecoin called terra.
However, Terra is not a typical stablecoin directly linked to hard assets. Instead, they are algorithmic stablecoins that are pegged to fiat or assets using algorithms.
Earlier this month, Terra’s algorithm lost its peg to the US dollar and the value of the stablecoin plummeted.
Within weeks of Popovich converting his savings to Terra, the tokens were free-falling. In early May, Terra’s value declined due to mass sales. This caused anxious investors to sell their holdings, creating a scenario similar to bankruptcy. Until Tuesday, the value of Terra tokens $0.00017.
Experts are still pondering the cause of Terra’s early loosening, but some say it joint attack on the token.
Terra’s crash has wiped out most of Popovich’s savings, and his Terra tokens are now worth less than $500, the Guardian said after seeing screenshots of Popovich’s bank account.
Popovich called the lost sheep “huge” and said he lost nearly nine pounds without sleep. “I often have headaches and anxiety. My wife still doesn’t know about this loss. I don’t know how to tell her,” he told The Guardian.
Insiders cannot independently verify Popovich’s account.
Terra’s Crash Lost $500 Billion in Global Cryptocurrency Market Value
Popovich is one of thousands of private investors who have been burned by cryptocurrencies in recent weeks. Terra’s free fall has exacerbated fears in the broader cryptocurrency market. reeling Interest rate hikes and tightening of the fiscal situation.
Since Terra was released in early May, the global cryptocurrency market capitalization is about $500 billion, according to On CoinMarketCap data.
At least one Reddit user lost due to Terra crash share Worldwide Suicide Prevention Helpline Numbers.
“I want to re-emphasize here. Don’t invest the money you need to survive/to live next week/month/year. Don’t invest to get more in the next month. This is a very volatile market. No one knows what’s going on Will it happen,” the user said.
Even billionaires could not escape the crisis. Changpeng Zhao, wealthy founder of Binance, the world’s largest cryptocurrency exchange, joked last week that he was “poor again” after Binance’s investment in Luna plummeted from $1.6 billion a month to $2,200 a month. before.