The collapse of Terra (LUNA) had disastrous consequences for many investors around the world. UST, the stablecoin of the Terra ecosystem, has thrown a Ukrainian family into misery. A Taiwanese committed suicide after the coin was depreciated.
A Ukrainian family suffered a great loss because of LUNA
Cryptocurrencies and stablecoins can be used as an investment vehicle in times of financial turmoil and adverse events (such as the Russian invasion of Ukraine). Either way, allocating some wealth to this asset class seems like a better decision than buying it in a war-torn region. Based on this assumption, Yuri Popovich, who now lives in Kyiv, Ukraine, invested all of his family savings (around $10,000) in UST. At first glance, the UST looked like a less risky stablecoin than most volatile cryptocurrencies, as it was said to be pegged 1:1 to the US dollar.