A Kyiv resident Yuri Popovich said he lost almost his entire family savings as a result of the UST collapse. According to the Ukrainian, he invested all his savings (nearly $10,000) into the stablecoin UST before its collapse. With over 90% of the value of the stablecoin gone, Popovich said the situation has crippled him financially.
He said he invested the money in April as a way of protecting against the risk of currency collapse due to the political situation in the country.
“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.
An Unlikely Situation Surrounding UST
Investors who usually place their money on stablecoins are not high-risk takers. Most investors that choose these options are afraid of the volatility of crypto assets and other high-risk assets. This is because, unlike most cryptocurrencies, stablecoins are presumed stable since they are pegged to fiat currencies. In most cases, they are pegged to the USD, which is considered very stable.
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“I am not a speculator; I just wanted to save money,” Popovich said. However, no one expected the level of meltdown that overtook Terra in May, leading to a massive uproar in the market. Based on the present market price of UST, his savings are now worth less than $500.
Popovich stated that the current living conditions in Ukraine are extremely tough. Adding this to the colossal amount he and his family has lost due to the Terra crash would make it even more challenging.
More UST Investors Reveal Their Misery
Popovich is not the only one that has been hit massively due to the collapse of Terra. At a point, the stablecoin has more than $50 billion invested in it. But now, the token’s market capitalization has fallen to nearly $1 billion.
On a similar note, an unidentified person reportedly rang the doorbell of the house of Terraform Labs founder, Do Kwon. The person, who only met Kwon’s wife, reportedly lost $2.3 million due to the market crash.
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