Yuri Popovich, a Kyiv resident, said the UST collapse cost him almost all of his family’s savings. According to the Ukrainian, before the collapse of the stablecoin UST, he put all of his funds (almost $10,000) into it. Popovich claims the issue has financially devastated him because the stablecoin’s value has plummeted by almost 90%.
He stated he put the money in in April to hedge against the chance of the country’s currency collapsing owing to the country’s political circumstances.
“It was impossible and unsafe to store funds in the form of banknotes,” he said, adding that the crypto assets advertised as safe and backed with the USD gave him another option.
Investors that often invest in stablecoins are not high-risk takers. The volatility of crypto assets and other high-risk assets is a major concern for most investors who choose these options. Stablecoins, unlike most cryptocurrencies, are assumed to be stable because they are tethered to fiat currency. They are usually tied to the US dollar, which is regarded as a relatively stable currency.
Popovich explained, “I’m not a speculation; I just wanted to save money.” No one anticipated the magnitude of breakdown that engulfed Terra in May, causing a tremendous market upheaval. His savings are now worth less than $500, based on the current market price of UST.
According to Popovich, the current living conditions in Ukraine are exceedingly difficult. Adding this to the massive sums he and his family have lost as a result of the Terra disaster will make things much more difficult.
Popovich isn’t the only one who has suffered greatly as a result of Terra’s demise. The stablecoin had more than $50 billion invested in it at one point. However, the token’s market valuation has now dropped to little over $1 billion.
On a similar note, an unknown person allegedly rang the doorbell of Terraform Labs founder Do Kwon’s home. Due to the market crisis, the guy who merely met Kwon’s wife reportedly lost $2.3 million.
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