(CMR) The price of the Terra (LUNA) cryptocurrency reportedly collapsed to nearly $0 earlier this week, wiping out the fortunes of crypto investors.
Terra, which ranked among the top 10 most valuable cryptocurrencies, dropped below $1 on Wednesday, having peaked close to $120 last month.
Terra's significant loss indicates the major meltdown cryptocurrency markets face, with analysts warning of a “ripple” effect from the apparent failure of Luna and stablecoin terraUSD.
According to Forbes, the meltdown has wiped nearly a trillion dollars from the wider cryptocurrency market, reducing total market capitalization to its lowest since late 2020.
Several persons on Reddit said they lost all their savings in the major collapse.
“I lost over $450,000, I cannot pay the bank. I will lose my home soon. I’ll become homeless,” one person wrote on the forum.
“I lost all my life savings. Had bought Luna at $85, not sure what to do,” another user wrote.
Several persons regretted not cashing out when their investments were earning.
“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,” one person said.
This crash highlights the volatility of the cryptocurrency market. According to The Gamer, analysts fear that this major collapse of Terra is causing a ripple effect on the broader crypto market.
Bitcoin is currently trading at $29,000, down almost 18% over five days. According to Forbes, other cryptocurrencies such as Ethereium, Solana, Cardano, and others are down anywhere from 25 to 33%.