The Terra collapse is now four months gone, and things continue to develop around the why. Mostly, the attention has been on founder Do Kwon and others who were involved in the running and eventual downfall of the network. But one set of people that have not been put at the forefront were the people that lost money in the crash. These everyday people who lost significant savings in Terra have begun to speak out.
Unpacking The Impact Of Terra
In a Twitter thread, user FatManTerra who has become known for calling out the flaws with the network, shared some of the stories he had received from individuals who were affected by the crash. The stories show the impact on everyday people who believed that they were putting their money in a ‘safe’ savings account where they could earn yield.
The very first of the stories posted narrated the story of a 37-year-old advance malignant tumor patient. They explain their predicament as one where they had put an insurance payout of $50,000 into Anchor protocol, Terra’s yield-earning vehicle. This had apparently been done in the hope that they could earn interest on this money which was supposed to help with therapy for their illness. By the time all was said and done, the investor in this story said they had lost more than 90% of the savings they had put into Terra.
— FatMan (@FatManTerra) September 28, 2022
Moving further down the thread was the story of another investor who had lost more than a quarter of a million foliates during the crash. This user explained that Do Kwon’s tweets following the initial de-peg event had spurred hope in them to keep holding their money in Anchor protocol, as Kwon had assured the community that the Luna Foundation Guard would be deploying funds to defend the peg. The individual admitted that this was a loan that was taken out against their house that was previously paid off, most of which was lost in the crash.
— FatMan (@FatManTerra) September 28, 2022
UST trending at $0.03 against the dollar | Source: UST/USD on TradingView.com
The stories continued to pour in, with another user revealing that they had lost $25,000 in Terra. Now, while this might not be as high as some of the others in the thread, it is very significant since the individual mentioned they were in Argentina, where $25,000 is life-hanging money. Even worse was that the money had come from their grandfather’s inheritance, all of which was now lost after the UST de-peg.
— FatMan (@FatManTerra) September 28, 2022
Perhaps one of the most heartbreaking of the stories was the one of the middle-aged Asian woman that is wheelchair-bound. The woman in the story who admitted to always being risk-averse had been convinced to move her funds over to Terra after being convinced of the protocol being marketed as a safe savings account. After the de-pegging, she had also held on hope following Kwon’s tweet, but days later, she had had to pull out her funds after incurring over 80% losses.
FatManTerra explained that he had gotten hundreds of responses with stories all narrating the harmful impact the Terra collapse had on investors. However, even now, no one has been brought to account for the collapse, while South Korean authorities remain hot on the heels of Do Kwon.
Featured image from Bloomberg, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Source: https://bitcoinist.com/the-dark-side-of-terra-collapse/