The case of Valeria and others interviewed in the article by Restofworld.org show the despair and helplessness experienced by those who had their savings in the stablecoin of Earth, MTS, which was emerging as a good safe haven asset in countries with inflationary problems such as Argentina.
- Valeria perdió los modestos ahorros de su vida con UST.
- Many were affected in Argentina.
- The ineffectiveness of UST as a safe haven asset.
- Earth working to release version 2.0
It’s no secret that any investment is subject to the possibility of negative results, but what happened to the ecosystem of Earth, el token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. LUNA and the stablecoin UST proved that unfortunately nothing is certain, as the fall of both assets left a large number of people affected who even lost their life savings by betting on a project that looked quite safe and lucrative.
This is the case of Valeria, a 47-year-old resident of the city of Buenos Aires in Argentina, who in an interview forRestofworld.org shared his tragic experience after stashing his savings in a UST, The algorithmic stablecoin model that fell sharply over the last few weeks amidst the fears and uncertainty that shook the market.
The economic situation in certain Latin American countries makes many residents look for options to local currencies, as these are often subject to inflationary processes and depreciate rapidly against other international currencies.
This is what is happening in Argentina with its local currency, and given the difficulty a measure of how hard it is to validate a new block on a blockchain. in accessing dollars, in addition to how unprofitable the official exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. rate is, many residents have seen in cryptocurrencies an option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. to protect themselves from the economy affected by economic, political and social conflicts.
As detailed byRestofworld, It was clear to Valeria that cryptocurrencies were an option, but she opted for UST because it is a currency currency is a medium of exchange that defines value. that in theory would keep parity with the U.S. dollar, which is why it would not be affected by the volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. that usually makes its weight felt on cryptocurrencies such as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. o Ethereum.
The thing is that, with all this in mind, Valeria spent some time learning about UST before he started investing in the stablecoin, which he eventually ended up putting more than $1,000 into in addition to another $500 he had borrowed,siendo esto el total de los ahorros con los que contaba, especialmente teniendo en cuenta que ganaba mensualmente alrededor de USD $300 vendiendo comida para costear sus necesidades.
The interviewee indicated that one of the things that inspired her to take the plunge was the fact that there were protocols DeFi, como Mars yAnchor, que derivaban excelentes rendimientos para todos los que decidiesen participar en sus programas de Yield Farming.
But things took a catastrophic turn when UST began to lose parity with the U.S. dollar, especially after all its funds were blocked in the U.S. dollar. DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. mentioned above. It was here where Valeria saw how her savings were reduced to zero with no possibility of being able to move them, to which she said:
“I invested in a stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. that is worth USD $0.08 today… I feel sick and helpless.”
Everyone lost their savings
Valeria’s experience joins thousands who also experienced a similar situation. For example, we have the case of Mudasir, a crypto user who also invested his savings in UST and was affected after the abrupt fall, who commented:
“I was swindled… I have nothing left, not even a penny.”
Another Argentine resident also shared his experience and revealed that he lost around USD $17,000. Here he pointed the finger directly at Binance because he was motivated to take the plunge as the exchange promoted the stablecoin as a safe project.
A third interviewee from Argentina described his tragic situation, alluding to the need to operate with a reliable stablecoin in the face of the blockades and obstacles applied by the authorities to access foreign currency. He was operating in DeFi given the popularity the aforementioned platforms had gained, but revealed that it capitalized on losses of 90% and rated UST as a scam.
Pero posiblemente la razón por la que muchos cayeron con UST explains Amim Eftegarie, an Iranian living in the Netherlands. As with the other interviewees, he too recorded losses in excess of USD $8,000 but explains the following:
“Many people see high returns and simply invest investing is when you put money in a financial scheme with the intent of making a gain. a lot of money. Terra was seen as such a safe and reliable savings protocol, so it had the trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. of many smart and sophisticated people in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. world.”
Losing is never a good thing
These are just some of the testimonies of the thousands of cases that flooded forums and social networks after what happened with Earth, And although many are calling for calm and inviting us to learn valuable lessons from what happened, the truth is that this is not going to solve the big problem that many are facing.
Valeria’s case perfectly reflects what happens to many residents in Argentina, Venezuela and many other nations where their currencies are affected by inflationary spirals. The need to find mechanisms to cope with local crises and protect what little purchasing power one has is crucial for many, so simply taking the loss may not be the best option.
Analysts and enthusiasts pointed out that most likely a large part of those affected are people and entities that have not been operating in this market an area or arena, online or offline, in which commercial dealings are conducted. for a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. time, while others highlight cases such as the CEO of Galaxy Digital, Mike Novogratz; the CEO of Binance, Changpeng Zhao; and many other reputable personalities who lost large amounts of capital capital is most commonly defined as the large sum of money you would use to invest. either by betting on UST o a LUNA.
The fact is that the possibility of a stablecoin losing significantly its parity with the US dollar is unthinkable, especially when Earth spared no expense in ambitious plans to back up its currency with an aggressive campaign to buy up Bitcoin.
For the time being, the team of Earth continues to move forward in its plans to implement a plan to relaunch the network, with which they plan to compensate the affected victims. Although, given what happened with their flagship coins, there is still a question as to whether this will have good results, mainly depending on whether the crypto community will give them another chance and they manage to regain the trust they originally had in the development team.
- Terra 2.0 launch delayed to May 28 as 1.3 billion UST burn progresses
- More exchanges announce their support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for Terra 2.0: FTX, Bitfinex, KuCoin
- Terra 2.0 to launch this Friday: Binance, Huobi and other exchanges back reactivation
Version by Angel Di Matteo / DiarioBitcoin
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