Hello people!😊
Today I bring you a piece of news that, given the situation of this last week in the crypto market, seems very interesting to reflect on.👇
This is a trader called ImmortalCrypto, as he is known on social networks, he has been trading cryptocurrencies for more than 4 years. And at least since 2020, he does it full time, as his main activity. That transition, from a job outside of trading to this full-time job, was made after he became a consistently profitable trader.
He himself told CriptoNoticias in direct contact with his story, which dates back to the bear market during 2018. At that time, with bitcoin hovering around $6,000, he began trading. He lost a lot, but he also managed to win. Now, looking back over time, he says he is glad to have entered the bear market. It's better this way, he says.
In this world, we might think that such experience is enough not to incur too great a loss. And in part, that is true. However, he was one of the thousands of people who lost money in the Terra project debacle. Although he did not invest in the LUNA token, he did have tens of thousands of dollars in its stablecoin, TerraUSD (UST).
Via Twitter, he commented that he had lost 70% of the capital he had in UST, as a result of the loss of the 1:1 parity between this currency and the US dollar. A parity that, in theory, should not lose. After all, it is a "stable" currency. But the reality has been different.
The history of the Terra project, its stablecoin, its token and its bitcoin reserves has ended in the worst possible way: with billions of dollars in losses and a lot of people affected with devastating results. . The case of ImmortalCrypto was not one of the worst. As he himself alleges, this has been thanks to the experience and the forecasts he had taken.🙃
But… how did he experience it? And even more: why did it enter the Terra ecosystem? He did it looking for greater profitability, basically. It did not go into LUNA, the Terra token that had been appreciating at a tremendous rate this year, before this week's debacle. But he did get into UST with capital that, while not heavy on his portfolio, was not minimal either.
It all started at the beginning of this year, when he decided to divert “much of the money he had in stables” to staking. It is an activity through which a user acquires and locks a certain number of tokens in exchange for rewards. In the case of UST, that reward was a 20% annual return.
He says that he learned a lot about the process, he spoke with fellow traders, "quite influential people on cryptotwitter". They warned him about the risks of having all the capital in a single stablecoin and, ultimately, he decided to divide the staking portfolio into three parts: one in UST, one for Tether (USDT) and the other destined for USDC or USD Circle Coin. , with which he opted for rewards of between 8% and 12%.
The problem is that the currency began to lose its anchor to the dollar little by little. He thought about leaving but UST momentarily regained parity and said "I'm staying". But everything got worse. The next day UST was already worth $0.7. He decided to exit staking at that time, already at a 30% loss. Something that in trading would not bother him, he says, but considering that it was in a “stable” currency, it changes the perspective.
> …but the exchanges take about 48 hours to return the amount to you. In those 48 hours the fear you have passed: a death spiral. It fell to $0.30, I woke up that day and the first thing I looked at was UST. It was at $0.30 and LUNA at $1. At that time I already had staking unlocked, so I had the option to take it out with a 70% loss or risk losing the rest. Seeing what was happening, it was very unlikely that the 1:1 would return. I decided to take out at 70% loss. I had approximately USD 50,000 in UST. 70% are pretty big numbers. It's not something that stops me from moving. I expected that some could fall, there could be a problem. It bothers me a lot because it put me in a difficult situation, which is making a decision whether to sell your stable at $0.30, something that shouldn't happen in crypto under any circumstances.
ImmortalCrypto, cryptocurrency trader.
💪✌️🤙
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