The price of the Terra (LUNA) cryptocurrency has plummeted by over 99%, wiping out the crypto investors fortunes.
Terra, one of the top 10 most valued cryptocurrencies, fell below $1 on Wednesday after reaching a high of almost $120 last month.
Other coins appear to be in difficulty as well, albeit not to the same degree. The brunt of the losses occurred overnight, with a price drop of 100% in just 72 hours.
The sudden meltdown saw its market cap plummet from almost $40 billion to only $150 million, triggering in catastrophic losses for cryptocurrency investors.
“I lost all my life savings,” one member of the r/TerraLuna sub-Reddit wrote. “Had bought Luna at $85, not sure what to do.”
Another user claimed to have lost $15,000 after failing to sell their stock for a significant profit when it was trading above $100 last month.
"If I had cashed out when it was $100, I would have been up to $25,000," Reddit user No-Forever said. "However, I became greedy in the hopes of earning more money so that I could at least put a downpayment on a house for my family." I guess it means no house and no savings."
After users expressed concern about the crash's repercussions, moderators of the site, which has over 44,000 members, pinned a post with helpline numbers to the top of the page.
“I lost over $450,000, I cannot pay the bank,” one user member of the forum wrote. “I will lose my home soon. I’ll become homeless.”
At one point, leading crypto market Binance briefly banned Terra (LUNA) network withdrawals, preventing even those who wanted to sell from doing so.
A "large amount of pending withdrawal transactions... resulted by network slowness and congestion," according to the Cayman Islands-based exchange.
Terra's decline comes during a downturn in the broader crypto market, with bitcoin falling more than 50% since its all-time high of close to $69,000 in November.