A corner of crypto implodes: This isn’t my first rodeo
While crypto has created massive wealth for some, the majority of speculators unknowingly participated in a financial experiment that has left many casualties in its wake
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“I can’t take it anymore.”
A 29 year-old was sitting across from me, despairing after having lost two-thirds of his life savings speculating in crypto. Most of the losses came on the day of the Luna/Terra stablecoin implosion. As Terra was falling, greed took over and he used most of his savings to average down his existing holding, betting on a rebound. Instead it went to zero.
The Luna/Terra debacle has been dissected at length. Terra maintained a peg to the US dollar by virtue of the relationship to Luna and an algorithm that tied the two together. Crypto is no longer a fringe invention, having become large enough to ensnare plenty of young, naïve investors. While creating massive wealth for some, for the majority of speculators it has been a destructive force; they are unknowingly participating in a big financial experiment that will leave more casualties in its path to widespread acceptance, or total failure.
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