Terra/Luna Peg Loss Increases Rates of Mental Health and Suicidal Ideation
What Happened To Terra/Luna
On Monday May 9th the crypto market started its fall with the leading problem being the “Attack on Do Kwon’s Terra/Luna project. But what started this?
According to an Anonymous post on Reddit; here’s the world on the street:
“Blackrock and Citadel borrowed 100K BTC from Gemini (it appears in their loan book) They swapped 25K of that BTC into UST; This was all done quietly in anticipation of the attack.
When the time was right, they called Do Kwon at Terra Foundation and said they wanted to sell a lot of BTC for UST. As it was a large trade they told him they didn’t want to move the market and asked if he would like to buy their large clock of BTC at a discount for UST. Do Kwon took the bait. He gave them a huge chunk of UST, thus lowering the UST liquidity significantly. At that point, Blackrock/Citadel dumped all of the BTC and UST causing a massive slippage and triggered a cascade of force selling in both assets. The real problem was Blackrock/Citadel knew that Anchor, which holds a lot of Luna, was a ponzi scheme (They offer 20% staking APY) and this crash would trigger more withdrawals than anchor can repay. These forced withdrawals and selling would trigger a massive selloff in Luna, thus further breaking the $1 peg and wrecking the market further.
Blackrock and Citadel can now buy the BTC back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out. This is called market manipulation.”
Is Terra (LUNA) on the Verge of Collapsing?
Over the last 48 hours it’s easy to see things are not going well over at the Terra/Luna labs due to the higher amount of circulating supply it would be near impossible for the project to cover the losses. Terra/Luna is on the path to total self implosion and it isn’t helping the rest of the market. With so many different factors and technical analysis points being read across the board it’s hard to say whether or not the project will make a comeback but the statistics are low.
“I Have Lost My Life Savings in Terra/Luna”
If you start to look at the reasons and stories behind the recent downturn in the market you will see these titles. People and businesses who believed in Luna and Do Kwon’s projects are losing everything. As Terra collapses at of 98% overnight there are reports of suicide. The scariest part of all of this is the seriousness of the situation with TerraLuna’s Sub Reddit posting and sending out the International Suicide Hotline. With large amounts of money being lost, people in the crypto space are starting to suffer at a higher rate of mental health challenges like Depression, Suicidal Ideation, High rates of Panic Attack inducing Stress and Anxiety. This can be a very difficult situation for anyone to deal with. More so people across the world are wondering how to make it through these tough times.
Mental Health, Suicide and The Crypto Market
This year’s market has not been a good one, prices have continued to fall since the blackswan event was announced in March with the Russia-Ukraine conflict causing massive amounts of Fear and Uncertainty. And now with the recent events that have transpired this week with the Terra Labs, the unfortunate part of all of this is that everyday people have lost everything and the majority of that population this is a first. A study done in 2020 showed that the majority of the population that invested in Crypto was that of Millenials seeing it as a safer bet than Stocks and Bonds. The majority of loss is speculated between the ages of 19-34 years old. Aside from the losses people have suffered the majority of the population already has higher rates of mental health challenges and burnout from high stress jobs, trading and inflation rates rising on the weekly.
All of these factors can be extremely overwhelming for anyone. This articles main intention is to both inform you or a loved one of the issues being duscussed in the community as well as offer help for anyone who is currently struggling with Mental Health challenges and Suicidal Ideation due to the crash. Don’t wait for things to get worse, reach out and speak to someone about what your or a loved one are going through. Learn new skills and build a tool chest full of how to deal with high anxiety, high stress and thoughts of self harm. You are not alone, Inneractions is here to help. Our fully accredited Mental Health Outpatient program has both in person and online classes to help with the stressors of everyday life.
For more information on how to get help with mental health call us today. Things will get better, you do not have to do this alone. Inneractions IOP is here to help. Call us today to learn more about our program and how we help clients in the professional workplace heal from high anxiety, stressful situations and major depression. Call Today 1-866-780-4046