Cryptocurrency crash: LUNA drops 99% and its subreddit fills with suicidal messages (and Bitcoin, below $27,000)
For some weeks now, cryptocurrency prices have been in turmoil, but in the last few days things have only gotten worse: this morning the most popular cryptocurrency has been trading below $25,000, and right now it is around $26,700. Things are no better for the rest of cryptocurrencies: Ethereum, Solana, XRP or Cardano are falling much harder.
And all this while the cryptocurrency platform Coinbase discloses worse than expected results, plummets 26% on Wall Street, and its CEO acknowledges that in case of “hypothetical” bankruptcy, investors would have difficulty recovering their investments in cryptocurrencies.
The consequence? Selling panic, of course. But in the midst of this disaster, there is one situation whose drama stands out above the rest: that of the TerraUSD and LUNA coins, owned by the same entity.
One of the factors that was influencing the Bitcoin crash was the recent destabilization of a stablecoin (sounds absurd, doesn’t it?) called TerraUSD, theoretically designed to maintain parity with the US dollar. However, in the last few hours this cryptocurrency has traded as high as $0.22, and its founder Do Kwon has announced his willingness to sacrifice his other token (LUNA) to save the stablecoin. Of course, this has caused LUNA to already fall 99%, turning what until Saturday were real fortunes in cryptocurrencies into smoke. If a few weeks ago this crypto was trading at $120, it is already below $1.
Add to this that Binance, the main cryptocurrency exchange platform, has temporarily suspended LUNA withdrawals claiming that they were congesting the network, which has prevented many users who wanted to flee from the stock market massacre from selling.
Thus, those who invested their money in this cryptocurrency – which many had ranked as one of the 10 most valuable cryptocurrencies – have begun to congregate in the forum dedicated to it on Reddit to fill it with a multitude of users telling of having lost all their savings overnight.
The increasing desperation of the messages has, in fact, caused the administrators of the subreddit to be forced, finally, to close the posts and set as fixed – to increase their visibility – the American ‘hope phones’ because of the number of users (it has 44,000 members) who claimed to be considering suicide.