For many instances, losing its virtue and value by a company is more than just this as many hopes and aspirations are adjoined with it, that collapse with the business collapse
Since the news of Terra network collapse broke out, there have been many consequences following the instance, some of them were terrible for many investors across the globe. One such investor is a citizen from Ukraine named Yuri Popovich who had made an investment of all his family savings worth $10,000 into Terra’s Stablecoin UST and ended up losing almost everything following its collapse.
Undoubtedly cryptocurrencies and stablecoins have turned out to be yet another but quite influential asset class of recent times. Considering these investment tools are quite beneficial as they are free from the direct effect of any negative instances like recent Russian invasion in Ukraine and market turbulence. In such times, allocating savings capital into cryptocurrencies seems better instead into physical wealth like buying property in a war-affected area.
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However, relying on such an assumption, Yuri Popovich, a resident of Kyiv, Ukraine has invested all his family savings money into UST stablecoin. Following the on paper definition of stablecoin, it seems far less risky investment than cryptocurrencies in general as they always use to peg their value with US dollar in 1:1, yet the worse happened with UST stablecoin of Terra network that depegged and collapsed drastically.
The man said that he was not some random speculator who put his money expecting great returns, rather he just wanted to save his money. Almost everyone has known about how at the beginning of this month itself, the stablecoin has lost its backing against American currency Dollar and dropped from its around $1 trading price to meager $0.06. Following this, Popovich’s investment has shrunk to just $500.
Ill effects of facing such a devastating loss followed where the man had got severe health problems. As Popovich stated that he had lost his sleeping cycle and even his 4 kg weights. He is dealing with headaches and anxiety, on top of that his family does not know anything about the loss and he didn’t even figure out the way to tell her. As per him the current living conditions of Ukraine is quite tough and now the crash of UST followed by loss of a colossal amount of money from his family savings would make lives of family even more challenging and critical.
Source: https://www.thecoinrepublic.com/2022/05/29/why-is-ust-collapse-worse-than-war-for-this-ukrainian-family/