A KYIV RESIDENT TO PROTECT HIS LIFE SAVING CONVERTED $10,500 INTO TERRA & LATER IT CRASHED IN VALUE
Russia was invading Popovich's homeland, Ukraine. A Kyiv citizen wanted to protect his $ 10,500 savings in financial collapse or other war-related accidents, he told the Guardian in an account published Sunday. It is estimated that the cost of living in Ukraine was estimated at $ 467 per person in May, according to Numbeo.
The International Monetary Fund announced in March that food and oil prices were rising as a result of the war. "Higher prices for items such as food and energy will further inflate inflation, lower inflation rates and balance demand," the organization wrote in a blog post.
The cryptocurrency market was evident in the stratospheric ride, Popovich thought, so why not turn his savings into these digital tokens to keep their value?
According to the Guardian, a Kyiv citizen response was a form of cryptocurrency called "stablecoin," according to the Guardian. In excess, stablecoins are backed by fiat currency and heavy assets, including government bonds or gold. This should prevent the tokens from becoming too flexible.
"It was impossible and unsafe to deposit money in the form of banknotes," Popovich told the store, making stablecoins an attractive option.
Popovich opted for stablecoin called terra.
But terra is not a normal stablecoin tied directly to a solid material. Instead, it is an algorithmic stablecoin, which means that it uses algorithms for pins in fiat currencies or commodities.
Earlier this month, the terra algorithm lost its pin in the US dollar, and the value of stablecoin fell.
Within a few weeks of Popovich converting his life-saving money into terra, the token went into autumn free. In early May, large sales of terra forced its price to drop. That prompted anxious investors to abandon their environment, creating a bank-like atmosphere. On Tuesday, a terra token cost only $ 0.00017.
Experts are still wondering what caused the initial tantrum, but some say it was a planned token attack.
Terra's crash ended all Popovich's savings, and his terra tokens now cost less than $ 500, the Guardian said after viewing screenshots of Popovich's bank account.
Calling the missing amount "huge," Popovich said he stopped sleeping and lost about 9 pounds. "I always have a headache and anxiety. My wife still doesn't know about this loss. I don't know how to tell her," he told the Guardian.
Insider could not independently verify Popovich's account.
Terra crash crashes global cryptocurrency market value by $ 500 billion
Popovich is among the thousands of traders who have been burned by cryptocurrencies in recent weeks. Terra's free fall raised fears over the broader cryptocurrency market, which has been rocked by rising interest rates and tightening financial conditions.
Global cryptocurrency market capitalization has lost nearly $ 500 billion since the launch of the terra in early May, according to a report.
"Here I would like to emphasize again, do not put in the money you need to live / live for weeks / months / even years. Do not invest in the hope that next month you will have something. This is a dynamic market no one knows.
Billions also did not survive the crash. Changpeng Zhao, the richest founder of the world's largest crypto exchange Binance, joked last week that he was "poor again" after Binance's investment in luna, a sister token with its value listed on terra's, crashed to about $ 2,200 from at $ 1.6 billion a month. ago.