- Several investors have taken to social media to talk about how much money they have lost through LUNA’s collapse, with some saying they lost their entire life savings.
- Elsewhere, Arca, a crypto hedge fund, is doubling down on UST even as the stablecoin loses stability, telling its investors that it believes UST will bounce back to $1 soon enough.
What’s your LUNA story? If like many other investors you bought the previously high-flying cryptocurrency at its height, chances are that you’ve lost a ton of money. Many investors have taken to social media to talk about their LUNA horror stories, ranging from those who lost their entire life savings to others who had the chance to cash out at $100 but held on and lost everything.
LUNA has lost 99.99 percent of its value in just the past week, dipping from $85 to trade at $0.03 at press time (and this will most likely be lower by the time you read this). From a previous high of close to $120 and a market cap of $40 billion, LUNA is now just worth $78 million.
Expectedly, billions of dollars have been lost in the past week. Many investors took to Twitter and Reddit to share their tales, with one stating on the r/TerraLuna sub-Reddit:
I lost all my life savings. Had bought Luna at $85, not sure what to do.
For others, it was the greed that got them. One investor revealed he had seen his crypto portfolio shoot up by $25,000 as LUNA broke $100 but didn’t cash out. When the crash began, he was unable to cash out as everyone was selling their tokens.
I should’ve cashed out when it was $100, then I would have been up $25,000. But I got greedy hoping to get more money so I can at least afford a downpayment for a house for my family. I guess no house and savings then.
For others, the consequences were way worse than just losing their portfolio. They had been left deep in debt after they took out loans to purchase LUNA. One Redditor shared:
I lost over $450,000, I cannot pay the bank. I will lose my home soon. I’ll become homeless.
Arca doubles down on UST despite the LUNA carnage
Arca, a crypto hedge fund that manages over $500 million is one of the few believers in UST, the stablecoin linked to LUNA, a link that many believe led to the almost-certain demise of the token. As CNF reported, even BlackRock, the world’s largest fund manager with about $9 trillion in assets has denied links to UST.
Arca is confident that UST will bounce back. This is despite the ‘stable’ coin losing its peg and sinking to a low of $0.3. It has since then bounced back to $0.6 although it’s yet to hit the $1 mark.
Writing to investors, Arca CEO Rayne Steinberg stated:
After this analysis, we felt, and continue to feel, that UST will ultimately maintain its peg and a number of attractive opportunities had become available. For example, we were able to purchase UST at a significant discount to par in the DYF (Digital Yield Fund) and then deposit with FTX who were paying 100% APY (annual percentage yield) given the buyer/seller imbalance during peak fear.
“We have significant experience in distressed situations from 2008/2009 up to and including SUSHI and LEO (Bitfinex) in recent years,” Steinberg added, referring to past crises involving the two cryptocurrencies. “We welcome these opportunities to be buyers when others are fearful.”