Some of the worst victims of the crash TerraLuna have reported total financial ruin and impending homelessness
Trigger warning: suicide
Bob gives Alice £100 for a crypto token. The token suddenly loses perceived value and isn’t worth £100 anymore. Alice keeps £100, and Bob keeps the worthless token. That’s an ultra-simplified analogy to describe what happened with the TerraLuna crypto crash, which has triggered an impromptu mental health crisis in all those negatively affected by their sudden loss of money.
Some of the worst victims of the crash have reported total financial ruin, impending homelessness and suicidal ideation. They have gone to Twitter and Reddit to mourn their losses and ask internet strangers for guidance on proceeding. TerraLuna investors have lost from a few hundred dollars to $450,000, with one user mentioning $1.75M lost after the collapse.
Many investors who lost money also admitted to having gotten too greedy with their staking, hoping that TerraLuna’s bullish peak in April would remain for the rest of the year. While others created a petition to urge TerraUSD founder Do Kwan to give them their money back or come up with measures to rectify the catastrophic crypto losses.
Suicide hotlines have been pinned at the r/TerraLuna subreddit, which its moderators have locked. No posts can be created in the sub, so a temporary subreddit has been created in the meantime. Victims of the crash have gone to the new sub to express their concerns. TerraLuna detractors have inundated many of these posts with hateful comments, berating TerraLuna investors for putting all their eggs in one basket or not heeding the warnings of crypto experts who predicted the collapse several months ago.
And while such negativity is unhelpful during a time of crisis, as it has been often repeated in many comments, tweets and messages, investing comes with risk. And, so it shouldn’t be done with money you can’t afford to lose.
Others urge those contemplating self-harm to think twice. A father mentioned losing so much money that he considered looking into insurance money he could get for his kids should he take his own life. Financial crises like those caused by TerraLuna’s collapse typically correlate with an individual’s overall mental health.
The truth is that many of those who lost money have the possibility of looking into bankruptcy. As another Redditor mentioned, bankruptcy isn’t necessarily a failure, it could be seen as a reboot and many lessons can be learned from the crypto crash.
It is encouraged that investors contemplating self-harm or suicide should seek professional help immediately.