Terra crisis: Family bonds shattered, dreams ripped apart

moneycontrol.com:

With last week’s Terra collapse wiping out $40 billion worth of investor wealth, cryptocurrency traders have been rattled and have lost any hope of recovering their money.

Terra is a public blockchain protocol that deploys algorithmic decentralised stablecoins that track the prices of currencies such as the US dollar and the euro. These include tokens such as TerraUSD, which is linked to the US dollar, and Luna.

The Terra cryptocurrency ecosystem suffered a massive blow around May 9. The Luna tanked almost 100 percent and the TerraUSD stablecoin lost its US dollar peg, which was priced at $0.00013 at the time of writing, according to data from Coinmarketcap.

Moneycontrol spoke to investors who had placed their bets on Terra Luna and most of them said they had lost all hope of recovering their money.

Hitesh Malviya, the founder of venture capital firm iBC Capital, said he had bought Luna at $4 the day before it was delisted and had invested an amount that he could afford to lose.

“I have zero hopes of recovery as my buying price was too high. The supply has increased drastically and even after executing the revival plan, its price cannot reach $1 again. It is, therefore, better to move on,” he said.

Crypto platforms such as Binance, CoinDCX, Coinswitch Kuber and Wazir X have delisted stablecoins TerraUSD and Luna after the collapse of the Terra blockchain, founded by South Korea’s Terraform Labs in 2018.

Lesson for investors

“It hardly matters if Luna continues to trade or not as it has reached a price that is nearly irreversible even if there is a miraculous recovery of the Terra network,” said another investor who lost a substantial amount. “While the token may have recovered 200 percent from its lows, people who invested in