Those who lost their homes, lost money because of Luna
The Reddit forum administrator had to pin the thread with a psychological helpline after many people expressed concern about the consequences of the plunge.
Luna is not the only cryptocurrency to drop in value this week. Bitcoin dropped to $28,300/dong on the afternoon of May 12, down nearly 60% from the peak of $69,000/dong. The entire cryptocurrency market is now worth $1,200 billion, less than half of what it was at $2.9 trillion in November 2021.The collapse of Terra Luna is considered a disaster of the cryptocurrency market. It is surprising because this cryptocurrency is classified as a "top coin", is among the 20 strongest coins by market capitalization, has a clear development path, is invested by large funds, so it is very popular. believer. Although there are no specific statistics, a cryptocurrency expert said that the number of people investing in Luna in Vietnam is not small.On Vietnamese social networking groups, the topic Luna appeared with a sharp increase in frequency from May 9. Some admitted they lost all their properties, when the damage was listed from tens to hundreds of thousands of dollars, some even lost nearly a million dollars.Terra is a blockchain created by Terraform in 2018 with two founders, Do Kwon and Daniel Shim. The Terra network uses the DPoS consensus mechanism, which allows smart contracts to create a variety of stablecoins. The most famous of which is UST, the fifth largest stablecoin by market capitalization as of May 9.Luna is Terra's project governance token, which plays an important role in the UST and its stablecoins. In principle, UST is the material to make Luna and vice versa, Luna is also needed to cast UST. According to experts, the only way for the Terra team to save the situation is to accept the sacrifice of one of the two tokens. CEO Do Kwon on May 11 said he chose to keep UST. However, efforts to save the UST were also unsuccessful. This stablecoin has also plummeted from $1 to $0.17."There are a lot of people who have suffered greatly. In the cryptocurrency world, only the strong survive, the weak will be eliminated," said Garrick Hileman, research lead at Blockchain.com. He is optimistic about the long-term prospects of the cryptocurrency, but thinks the current drop shows that amateur players need to be especially careful."I sympathize with those who are losing because of this situation. But you should not invest more than your idle money," he said.