The price of the Terra (LUNA) cryptocurrency fell over 99%, wiping out the fortunes of crypto investors.
Terra, which ranked among the top 10 most valuable cryptocurrencies, fell below $1 on Wednesday, after peaking near $120 last month.
The majority of the losses were realized overnight, with prices dropping 98% in just 24 hours.
The dramatic crash caused its market capitalization to plummet from over $40 billion to just $500 million, leading to unprecedented losses for investors in a top cryptocurrency.
“I lost all my savings,” wrote a Reddit sub-member r/TerraLuna. “I bought Luna for $85, I didn’t know what to do.
Another wrote that they lost $15,000 after failing to sell their holdings for a substantial profit as they traded above $100 last month.
“I should have cashed out when it was $100 so I would have won $25,000,” Reddit user No-Forever wrote. “But I got greedy hoping to get more money so I could at least pay a down payment for a house for my family. I guess no house and savings then.
Some members shared suicidal messages after watching their assets become worthless overnight, while others offered their support by sharing links to suicide helplines around the world.
“I’ve lost over $450,000, can’t pay the bank,” wrote one user on the Terra forum. “I will soon lose my house. I will become homeless. Suicide is the only way out for me.
Moderators of the forum, which has more than 44,000 members, pinned a message with support numbers to the top of the page.
Major crypto exchange Binance temporarily suspended withdrawals on the Terra (LUNA) network at some point, meaning even those who wanted to sell were unable to do so.
The Cayman Islands-based exchange cited “a high volume of pending withdrawal transactions…caused by network slowness and congestion.”
Terra’s crash comes amid a broader crypto market downturn, which has seen bitcoin fall more than 50% from its all-time high of nearly $69,000 in November, but LUNA’s demise has been compounded by problems with the UST pegged Terrastablecoin dollar.
Earlier this week, the UST decoupled from the dollar and fell to $0.29. The Luna Foundation Guard (LFG), which acts as UST’s steward, is currently seeking to raise over $1 billion to revive the algorithmic stablecoin, although many investors believe the project is over.
Do Kwon, who founded Terra’s creators, Terraform Labs, tweeted on Tuesday, “Close to announcing $UST stimulus package. Hang tight.
He followed that up with a Twitter thread on Wednesday, asking the community for patience.
“I understand that the last 72 hours have been extremely difficult for all of you – know that I am committed to working with each of you to overcome this crisis, and we will get through this,” he wrote.
“The Terra ecosystem is one of the fastest growing in the crypto industry, with hundreds of passionate teams building category-defining apps within… Terra’s return to form will be a spectacle to watch. to see.”
If you are experiencing feelings of distress and isolation, or if you are struggling to cope, The Samaritans offers support; you can talk to someone for free by telephone, confidentially, on 116 123 (UK and ROI), by email email@example.com visit the Samaritans website to find the contact details for the nearest branch.
If you are based in the United States and you or someone you know needs mental health assistance right now, call the National Suicide Prevention Hotline at 1-800- 273-TALK (8255). The Helpline is a free and confidential support line available to everyone 24 hours a day, seven days a week.If you are in another country, you can go to www.befrienders.org to find a helpline near you.