While crypto and blockchain technology might seem cool and exciting, their is a dark and cruel nature that co-exists in this up and coming space.

Already this year we have seen the huge investment firms such as 3 Arrows investment go belly up as the algorithmically back stable coin Luna Terra de-pegged from a $1. Thus resulting in a cascading impact of distrust and resulting in the stable coin which is only supposed to stay locked a $1 which decreased to less than a single penny.

In some circles, the 30-year-old Do Kwon AKA the creator of LUNA had a reputation for being cocky on Twitter, thus some people believe it may have also been a personal attack as to why it  happened. Charles Hoskinson, the creator of Cardano, proposed one possibility; however, he later took down the tweet.

He mentioned in a tweet that the Gemini exchange has loaned a significant organization 100,000 Bitcoin. Then, at a discount, they traded a sizeable portion of that BTC for UST over the counter (OTC) with Do Kwon. He concurred, reducing UST liquidity.

Then, it is said, the institution dumped significant sums of both BTC and UST onto the market, leading to a cascade of leveraged long positions being liquidated, slippage, and investor panic selling, including a lot of people losing their LUNA holdings.

First, it seems like a lot of real people are losing money. Members of the Terra Luna forum have posted about suicide on Reddit. “I can’t pay the bank because I lost over 450k USD.” My house will soon be lost. I’ll lose my home. One participant stated, “The only way out for me is suicide.” Members have been exchanging personal accounts of prior suicide attempts and information for suicide prevention.

Let me make this clear to all folks, don’t invest or place your money into something until you have really deeply looked into it, otherwise you might get blind sided.