Overnight, the Terra Luna cryptocurrency falls by 98 percent.

The price of the Terra (LUNA) cryptocurrency has fallen by more than 99 per cent, wiping out the fortunes of crypto investors.

Terra, which ranked among the top 10 most valuable cryptocurrencies, dropped below $1 on Wednesday, having peaked close to $120 last month.

The majority of the losses were realised overnight, with a 98 per cent price fall in the space of just 24 hours.

The dramatic crash meant its market cap dropped from above $40bn to just $500m, resulting in unprecedented losses for investors in a leading cryptocurrency.

“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 wrote that they had lost $15,000 after failing to sell their holdings for a substantial profit when it was trading above $100 last month.

“I should’ve cashed out when it was $100, then I would have been up $25,000,” wrote Reddit user No-Forever. “But I got greedy hoping to get more money so I can at least afford a downpayment for a house for my family. I guess no house and savings then.”

Moderators of the forum, which has more than 44,000 members, pinned a post with helpline numbers to the top of the page after users voiced concern about the consquences of the crash. “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.”

Leading crypto exchange Binance temporarily suspended withdrawals on Terra (LUNA) network at one point, meaning that even those who wanted to sell were unable to.

The Cayman Islands-based exchange cited “high volume of pending withdrawal transactions… caused by network slowness and congestion”.

The Terra crash comes amid a downturn for the broader cryptocurrency market, which has seen bitcoin fall more than 50 per cent since its all-time high of close to $69,000 in November, however the demise of LUNA has been compounded by issues with Terra’s dollar-pegged stablecoin UST.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you to please do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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