Crypto meltdown is wake-up call for many, including US Congress

Kwon’s promise turned out to be worthless. A massive selling event caused Terra to 'break the buck' and collapse in value. Reddit boards dedicated to Terra and Luna were dominated for days by posts referencing the National Suicide Prevention Hotline. — Bloomberg

NEW YORK: Meltdowns in the cryptocurrency space are common, but the latest one really touched some nerves. Novice investors took to online forums to share tales of decimated fortunes and even suicidal despair. Experienced crypto supporters, including one prominent billionaire, were left feeling humbled.

When the stablecoin TerraUSD imploded last month, an estimated US$40bil (RM176bil) in investor funds was erased - and so far there has been little or no accountability. Stablecoins are supposed to be less vulnerable to big swings - thus the name - but Terra suffered a spectacular collapse in a matter of days.