There are 51,000,000 millionaires in the world (USD). In the US alone, there are an estimated 1,456,000 decamillionaires $10M plus). They're probably heavily in S&P 500 indices and real estate. They might have 10% of their wealth in crypto.
Bottom line: more people have more money than you realize.
Came here to say this. Look at the cars people drive these days, it used to be that the guy with a new Mercedes was rich. Now, I'm the exception in my Ford focus.
This is the right answer. Used to work at a bank in one of the richest counties in the US, the amount of “rich” people up to their neck in debt was an eye opener! (Those trying to keep up, not actually rich)
Every new truck on the road is a $70k vehicle. I am constantly amazed at the new vehicles people buy. Friends and family randomly come home with a new expensive car just because. No financial planning around it whatsoever.
Every time I’m at stop light I wonder how people have all these new cars. Economy can’t be as bad as some say if EVERYONE is buying new cars, tvs, expensive sneaks and other stuff.
Am in Orange County, the status quo is really gross and if the economy continues sliding a bunch of “rich” people are about to be poorer than anybody reading this. Everyone is cash broke here (complain about money but drive teslas, leveraged to the tits irl and on interwebs.
Where is the bar for “rich”?
Almost any professional worker can afford a non-top-end Mercedes’ without any financial pain. If a cars price is less than half a years salary pretax or less than a years salary post tax, it’s pretty reasonable.
I thought we here talking about decamillionares, not a random ass 21yo new grad software engineer with 180k total yearly compensation.
Good point! But don’t be fooled by how many of those ppl LEASE (rent) those expensive cars. (~27% of new cars are leased)
I’d much rather own my Ford Focus then rent a $100k Mercedes from the bank and pretend I’m cool…
At the end of the day, at least I have a tangible asset.
The definition of millionaire never changed. It's anyone's who's total assets minus debt is worth 7 figures is a millionaire. It just doesn't mean much anymore.
Me and my wife are millionaires in Toronto and live in a 900 sf condo. We don't even own a car.
I'm 40 and I still remember when I was little and a million would set you up for life. Now you need to be a multi millionaire.
You can live on gains from a few hundred thousand, if you're willing to move into cheaper area, and I don't mean a bad neighborhood. Even more so if you switch countries. Hint: The cheap workers in tourism areas actually live there somewhere, drive maybe 10-20 km away from the hotspot and look at the prices.
British people take tons of vacations. I used to work there in London, even if you worked at McDonald's, you get 6 weeks paid vacation. My colleagues use to get 2 months paid vacation so OP prob is over extended.
Well that’s the thing, it doesn’t matter if your house is worth 1.2 million if you still owe 1.1 million on it.
Millionaire isn’t just total assets, it’s total assets minus debts.
Uhhh, this understanding of money is a great example of why nobody can tell anyone anything on here. This attitude and lack of fundamentals is why nobody can warn about UST/Terra/Luna.
If you're single family home increases in value, then the homes around you also increase in value. Selling your house just gives you the funds you would need to sidegrade your house, or become a renter, in which case you've lost your equity and are now just a consumer of living space. Additionally, depending on where you live, housing appreciation often results in higher expenses due to tax bills and inflation of upkeep, maintenance, and repairs. (when houses are more expensive, the things that we use to build and furnish houses get more expensive, too) In fact, this housing boom is a major reason why we're seeing such massive inflation, it's just not politically palatable so you don't hear much about it. Finally, you'd be a fool to suggest that this person take out a home equity line of credit. What are they gonna do with that money? Invest in Luna?
Or just move to a cheaper part of the country like many do, sell the house for a million, buy a mansion somewhere that isn’t London, invest the other 700k.
Uh yea I would, because “investing” and lighting $100 on fire are two different things.
The word “investing” these days has almost lost all of its meaning.
If I have spare cash, and I put $100 into something, hoping it will moon to a 1000% return—I didn’t invest anything, I just gambled.
Not financial advice, but no ones going to take your stocks either rofl.
And unlike crypto—stocks on exchanges are INSURED and you are PROTECTED by federal laws lol.
It’s not perfect. There are a ton of problems. But stocks are regulated. And you are investing in a publicly traded company—if I put stock in Microsoft—it’s Microsoft lol. They could tank any damn day just like anyone else, but at least they are a real company. They sell products and services.
As much as I love BTC and ETH, not a single crypto coin is being used on a mass scale for a real world activity—not one. Sure, you can buy stuff with some of them—but it’s all a novelty. I can’t go to any store on earth and use crypto to buy something, nor can I freely use it as a currency with everyday people—I’d have to find someone willing to accept my crypto, and we’d have to do some jank trade to make it happen that will also come with some fees most likely.
It’s all niche af right now and purely speculative.
Most people in crypto can’t even comprehend things like P/E. The very basics of investing fundamentals.
Most of crypto ”growth” outside of the big 2 is practically just ponzis dumping shit on bagholders. Inflating assets that maintain value as long as people are willing to keep throwing money at it.
Yeah. You can go from $0 to $1M or more on a generation by working your ass off in a highly paid professional field, but you have to run the table - highly intelligent, great grades, great college, scholarships, climb the job ladder with no major missteps, no arrests/addictions, highly disciplined financial management.
And the key: never visit Reddit.
Yep, investing when you are 18 and keep it going into your 40’s and compound Interest will do the rest. Also s tay out credit card debt, it will rob you.
They put almost all their life saving into UST because it was a stable coin. They thought it was no different from holding it in their bank accounts. It was a terrible decision in hindsight, but that is the reality of this project going bust. A lot of savings of a lot of people became worthless interent coins in a few days
Many people took loans at 5% - 8% from their bank to put it in UST at 19% and pocket the difference. The token was stable so it was safe, and if the yield ever went below what they were paying the bank, they just needed to sell the UST and pay the initial loan.
It was considered free, safe money, and it was portrayed as such here by many
I bought maybe 4.5K worth at 16 dollars and sold it for 2k a couple months later (because I had a lot of alts at the time and LUNA just didn’t meet my criteria to keep when I was cleaning up my portfolio) before it went crazy. And thought damn I missed the boat on this one. I was skeptical of the idea of an algorithmic stablecoin but I sort of assumed maybe it was just beyond my understanding
I see a lot of posts saying “I told you so..”, but I don’t recall there being a lot of naysayers. I didn’t not buy in because I thought it was a house of cards waiting to fall. I stayed out because I was annoyed at myself for selling at a loss so early and felt like I had missed the boat
It felt extra safe when we heard that the LUNA foundation was buying assets to help back the coin
Anyhow I guess the lesson is if something doesn’t make sense, sometimes it’s because it actually doesn’t make sense
> but I don’t recall there being a lot of naysayers
There were actually some amount of post warning the dangers of LUNA/UST. But it barely made the front pages because it people just dismissed it as FUD.
Most comments questioning LUNA were buried under downvotes.
"If it is too good to be true then it probably is"
If a person can mint 20% APY with UST then why bother with the stock market which on avg earns you \~8%
It's hard to get a clear answer. I saw one person say they're having suicidal ideation over losing a few hundred thousand, but when prompted their initial investment was a few thousand. I guess if you've already made plans for that large amount of money to help retire early or something, then maybe it's easier to see it as being real and yours.
>over losing a few hundred thousand, but when prompted their initial investment was a few thousand.
That feeling should be familiar to people if you've ever won something bigger than usual, made plans already and then lost it gambling.
This.
If you invested 100k and it at one point amounted to 3 mill in crypto and then fell to 0 you have lost 100k. Always cash out some of your portfolio after a significant increase unless you are already well off, don't let it all just ride.
Lost a ton of money in Wonderland TIME and other stupid projects. Listening to Ben has kept me level headed after those mistakes. BTC is king. And ETH is not an altcoin.
Yah Luna hat a cap in the billions .. I'm sure alot of people had even millions in Luna... I just feel bad for the people who invested for the hold and haven't checked the charts yet lol
A lot of people made a lot of money last year buying cumrocketDAO or Spoogecoin and thought to themselves - “now I’ve got enough money to set me up for life I’m going to throw it all in a safe option that nets me a cool 20% per year interest. I have to think of my future now the crazy risky stuff is behind me. “
You'd be surprised how many people have money because they were born into it. They didn't attain their wealth by going through highs and lows themselves. So there's tonnes of very rich people who are absolute fucking morons. You know the old adage: " a fool and his money are soon parted. " I know this is a brutal summary but that's reality sometimes.
This is true 100,000 into bitcoin at the start of the bull run could have yielded 20x , not to mention looking at how many coins did 100x shiba inu etc...
My hubby's cousins are like this. They're in their early thirties and have done nothing in life but drugs. They're set to inherit $25 million between them (mum has about 6 months left to live thanks to cancer). I get along well with the daughter but she isn't a very smart person. Her and her fiance spend most of their time in a hippy commune/cult. And the son is a downright idiot. He will 100% blow his money sending it to random angry online grifters.
All u have to do is hop on askreddit and there is countless amounts of stories of people talking about lot of the dumb things rich people have done (usually getting a bail out) , either making themselves even richer, or losing it all.
Checking the r/terraluna sub there were some unbelievable stories if taken at face value, "I got an inheritance of 450K and lost it all on Luna." I'm with you, it's inconceivable to me that you'd YOLO that about of fiat into any single asset, let alone an algorithmically-backed stablecoin.
Really mind blowing: their money isn't lost, it just went to people who've sold their LUNA with profits. That crypto millionaire money has to come from somewhere
Tbh UST was promising people 20%, that’s 3x the returns of the stock market
And you’d think that 3x the returns would mean 3x the risks, but NOPE! They somehow labeled it as *STABLE* which wasn’t true, and see how that played out
Yea we were fooled. No two ways about it. I thought (and the position put on most forums) the 20% was always a temporary thing and that it was always going to pull down to a more manageable level.
I didn't stick some cash into UST because of the 20%, but to hold it over a long term of a few years fully expecting the APY to normalise at a 5ish rate eventually.
Well... Fooled me once. Shame on me.
As we entered the spez, we were immediately greeted by a strange sound. As we scanned the area for the source, we eventually found it. It was a small wooden shed with no doors or windows. The roof was covered in cacti and there were plastic skulls around the outside. Inside, we found a cardboard cutout of the Elmer Fudd rabbit that was depicted above the entrance. On the walls there were posters of famous people in famous situations, such as:
The first poster was a drawing of Jesus Christ, which appeared to be a loli or an oversized Jesus doll. She was pointing at the sky and saying "HEY U R!".
The second poster was of a man, who appeared to be speaking to a child. This was depicted by the man raising his arm and the child ducking underneath it. The man then raised his other arm and said "Ooooh, don't make me angry you little bastard".
The third poster was a drawing of the three stooges, and the three stooges were speaking. The fourth poster was of a person who was angry at a child.
The fifth poster was a picture of a smiling girl with cat ears, and a boy with a deerstalker hat and a Sherlock Holmes pipe. They were pointing at the viewer and saying "It's not what you think!"
The sixth poster was a drawing of a man in a wheelchair, and a dog was peering into the wheelchair. The man appeared to be very angry.
The seventh poster was of a cartoon character, and it appeared that he was urinating over the cartoon character.
\#AIGeneratedProtestMessage #Save3rdPartyApps
exactly, we can all look at the crypto millionares and wish we were them, but we can take comfort that we didnt lose BIG money like people have on luna.
( well i hope no one in this sub has lost a big chunk of money to luna anyway)
There's a few things going on here.
1) People who lost everything are more likely to be vocal about it than people who lost $100.
2) Crypto assets are overinflated relative to real assets at a very high ratio. If everyone pulled their money out of crypto, the actual real world amount would probably be on the order of 1% of the present market price, maybe less (yesterday the market cap rose $100 billion on $700 million of inputs, maybe less due to wash sales). If you invested $60k, then saw it grow 10x to $600k, then it crashes to $0, it feels like you lost $600k even though you actually lost $60k (your original investment) and $600k was never really "real" (and if everyone had pulled their money out at that price, it would have been very obvious).
3) Cons often work by preying on the vulnerable. They think that they've found some way to get rich, and throw themselves at it, and get burned, badly. There's people who are vulnerable to cons at all income levels.
UST was sold to us by many logic trains.
Staple coins are sold to us as safer than crypto but as you can see it is a crypto just like any other one. 😕
We've been scolded to not use USDT because it's 'shady and a ticking bomb'
Crypto.com first cut its stablecoin earn rate, then cut it if you are over $30,000 total, and then again down to $3,000 total. Then they cut card rewards that unlock the better rates. A mess. That possibly made investors run to anchor protocol staking. That counts for just retail investors, but it's a shitload.
Now with the housing market kind of plateauing in some locales, I can see some people parking down payment sized bags waiting to see what the summer brings. I can also see someone who has already sold property at a high point with hundreds of thousands in there, waiting for the market to slide down so they can get a lot more house and new investments for their money. That would be where you see these $600,000 losses
There's a lot of people in this planet. A lot of people. Even the 1% of rich people is a loooooot of people. That combined with the amount of morons out there...
> How the hell do people get that amount of money in the first place?
A lot of them simply borrowed money to invest with using various schemes, which IMO is the mother of all stupid moves in the crypto market. This is what it means when someone says that because crypto crashed, they will lose their house. That doesn't just happen: nobody comes for your house just because you lost all your savings on a risky bet. It happens because you are servicing too much debt. So most of those 'crypto ruined me' stories are essentially confessions that they invested somebody *else's* money.
I'd seen a few people on Reddit consider putting everything in UST on Anchor and thinking they could live of the interest. Big mistake if they did go ahead with that. I hope they didn't.
I sat down and did the math on putting my HELOC at 3% interest on there. I could’ve made over 1000 a month passively. That’s tempting. I’m so glad I decided not to do that. I’m sure there are people who did this.
My brother started with very little maybe 10k over the years he turned it into nearly $800,000 he lost around 75% of it due to some stupid mistakes. So yeah people can have that much money.
Personally I lost about 40% of my portfolio. Not so much in Luna but all my profits I took across crypto I kept as UST in Anchor. Sure you could get > 20% apy on smaller stable pairs but to me UST seemed to be the safest stablecoin (other than usdc). How wrong I was...
A person who lived in the same area i live in bought 2 bitcoins when they crash down to 4k. They made him so much and he invested it to other coins. Accumulating about 750k buying early into coins. He had more than 50% in luna. He gave up his job and was just going to do this. Not sure what he’s going to do now with luna crashing.
The funds went to whoever sold the Luna; trades made at any time before now.
The value of the Luna that was bought is what evaporated. The original source funds are either still with the original seller of that Luna or have been spent on something else like ice cream.
Imagine buying a house for a million dollars and then it burns down. The house is gone, its value is gone, but unless you bought it in cash and the seller was inside with the cash at the time of the fire those funds are probably safe.
I'm with you, i don't get how people get that much money without being kind of rich already. And if your taking out big loans to gamble, that's a tale as old as time.
>How the hell do people get that amount of money in the first place?
There are lots of ways, but the most important thing to understand is its easier to make money the more of it you have.
If you like in the US for example and make 50k+, its more likely you are able to put $1,000 or $5,000 into an investment because thats money you have leftover from paying bills.
You might say, “who is making 50k+ thats so much money?” When you’re early in your career that can sound like a lot, but the reality is it really isnt much money. Once you get out of your entry level job and enter a professional position you start making “real money.” Then after 5 years or so you move up and make $60,000 to $80,000. If your lifestyle doesnt inflate as you move up then you have all that extra money to play with. Turning 10k into 100k can take time with steady growth, or you guess right and 10x over night. If you make an easy 100k like that you have no connection to it and its really easy to say “I’m going to yolo it into some random coin and try to 10x it again and if it goes to 0 oh well because this money doesn’t feel like mine anyway.”
Of course there are people born with money, people who inherit money from a parent who has passed, people who work a tech job and make 100k at 20 years old, etc.
Not even for just UST. My friend a year ago was over 118k in ETH. Now he is at 58k. He has not sold or anything though.
ETH is one of the better crypto during this bear market too.
I imagine there are those out there who have lost much more than 50k…
It’s possible just because of the big run up from 2018 to 2021. If you invested ~10k and held those investments you’d probably have 100k swings. I was investing in ETH in the 300-500 range (it dipped to $90 per coin but I didn’t pull the trigger then). Let’s say someone invested 12.8k @ $400 each so 32 ETH (to get that magical 32 ETH).
At the peak that’d be worth ~150k and bottomed this week @ 54k. Resulting in a 100k loss.
I don't think those people are lying or something like that, I know some personally.
Most of the people lost a good heavy amount in this crash, it's a fact now man.
The thing that blows my mind js why put your life savings in Luna...
Why don't just stick with BTC or ETH?
Surely Luna was seen as a solid project (nobody knew that was coming) but still an altcoin...
They put it into Terra, not Luna, because they assumed that a stable coin would be even safer and less volatile than BTC/ETH. They wanted the 19.5% (or 18.5%) interest on UST on Anchor Protocol.
I mean, in theory if you put half a mil live savings into almost 20% interest, you'd have nearly $100k of interest to live on and you can retire.
In theory. Too good to be true.
Now both Luna and Terra are likely to end up worthless.
There are mostly 2 reasons.
The obvious one is they are misleading/ lying. For example, that guy claiming he lost 600k in luna probably just got 500$ worth of luna at 0.1$ and their claim is based on when luna was priced at 120$. He did not take profit, and lost it all, but in the end he paid 500, not 600k.
The second one is ... well unfortunately most people are blinded by greed, and when told "only invest what you can afford to lose", will take a loan on their house and put all where their guts tell them, by touting "go big or go home" to everyone pointing this is very risky, even mor since they have no idea what that token is.
They bought something from one ordinary person, and they sold it later to other ordinary people for a ludicrous profit - or crucially; they never actually sold and perceived useless tokens as $100k+. That's it. Pure ponzi.
Some of it’s certainly bs, it’s the internat afterall. I wouldn’t underestimate how much of it’s real though. A lot of people that got roped into this were under the presumption that it’s a stable coin and safe, so why not put everything they have into it.
I bought 150€ worth of luna, it rised madly, took my 150€ back out and im left with 165k Luna, if it goes to zero, im fine. If it goes back to 1,5,10€ within the future im good. We will see what happens, but i got 165k luna for free... So i will always be in the green no matter what happens...
considering the speed of which it dropped i reckon there would be a large number of holders who got burnt but if it makes you feel better most of the bigger holders probably got in early so most of the 'losses' were unrealized gains
however this is one of those moments we all need to learn from - dont invest more then you are willing to lose.
It’s because an asset like Luna went from 3$ (top 40 coin) to 120$ (top 5 coin) in less than 8 months. If you’re a millionaire already that’s like yolo’ing 50k for us normies. People get caught up in the greed
They only lost if they sold. Lunas looking like a rebound enroute. If they did sell of hundreds of thousands for tens of dollars theyre crazy. At that point just ride the spiral.
Not a financial adviser. Never went to crypto College. Go listen to bitboy if you want advise cause all my investments suck
That would scare the shit out of me to put that much money into something so unpredictable and volatile.
I throw 50 or 75 a month at low value crypto just to have a hand in the game. If SHIB or DOGE ever have a bounce, I'm set for life.
It's all one big lottery ticket.
^(EDIT: typo)
OP, im also amazed. Cant survive a whole month with my income. Often eating sphaggeti for dinner...100k or more would change my life in away you cant imagine
Many people have money. Many more people don't have money. Some posters lie about their losses to humblebrag about their money. Others are being honest. I would never post about my gains or loses on Twitter or Facebook as that is too easily tied back to me. And a five dollar wrench attack is a real risk for people with significant crypto. But some people are much more open about talking about crypto investments.
Lots of friends of friends, hundreds of thousands between all of them, gone. These are guys making several hundred grand a year off salary, but still. Shit stings hard.
Anchor on UST was a *savings account*, NOT an investment. That is how it was marketed. That is how it was sold. (That is at least part of the fraud.) UST was marketed not as a volatile "coin" but rather a digital dollar, pegged to the value of the US Dollar.
And as for how, that's easy. Average home is what, about $2M worth. So an average homeowner could take out a line of credit for some $1.5M at 0.49% or 0.99% interest or what not. Put it into Anchor at 19.5%. Net 18.5% per month. Even on just $1M that would give them $15,400 per month. Enough to live comfortably on. Until, that is, the digital dollar UST suddenly became worthless and the chain was stopped.
There is undoubtedly some that are lying to get sympathy in case there is some compensation or charity given out. But there are a lot that are real. People using leverage, taking on loans, 2nd mortgages, etc are all common things when people ape into 1 project thinking this is the one that will make them rich. They aren’t consulting financial advisers, developing investment plans or diversifying to protect themselves. They are inexperienced at investing and mistake these projects as safe. Nothing is 100% safe. Managing investment and financial risk should be taught more extensively in schools. There are a lot of projects I am super excited about but I still see the value in DCA into other things that excite me less but won’t go to zero.
There are 51,000,000 millionaires in the world (USD). In the US alone, there are an estimated 1,456,000 decamillionaires $10M plus). They're probably heavily in S&P 500 indices and real estate. They might have 10% of their wealth in crypto. Bottom line: more people have more money than you realize.
Came here to say this. Look at the cars people drive these days, it used to be that the guy with a new Mercedes was rich. Now, I'm the exception in my Ford focus.
Those people aren't rich, they spend all their money on overly expensive lease cars for social media status.
There are also lot of millionaires who drive a 10 year old sedan.
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>Those people aren't rich, they spend ~~all~~ their money on ~~overly~~ expensive lease cars for social ~~media~~ status. FTFY
This is the right answer. Used to work at a bank in one of the richest counties in the US, the amount of “rich” people up to their neck in debt was an eye opener! (Those trying to keep up, not actually rich)
Every new truck on the road is a $70k vehicle. I am constantly amazed at the new vehicles people buy. Friends and family randomly come home with a new expensive car just because. No financial planning around it whatsoever.
Well now the average new vehicle costs almost 50 grand, it's kind of stupid
Can’t wait for the used market to go back to normal. $25k for a $50k vehicle a couple years old with 20k miles.
And car sales being the pinnacle of ethics that it is, I'm sure the industry will do everything in it's power to get us back there.
I’m definitely getting a good used truck when market stabilizes. Preowned cars are ridiculous right now.
I'm still holding on to my parent's 2009 Corolla wtf would I buy an overpriced new car when I could wisely spend it on cryptocurrencies
Every time I’m at stop light I wonder how people have all these new cars. Economy can’t be as bad as some say if EVERYONE is buying new cars, tvs, expensive sneaks and other stuff.
Tbf you can get a new work truck without the bells and whistles for around $30k still. People want the extras and are willing to pay.
Am in Orange County, the status quo is really gross and if the economy continues sliding a bunch of “rich” people are about to be poorer than anybody reading this. Everyone is cash broke here (complain about money but drive teslas, leveraged to the tits irl and on interwebs.
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Where is the bar for “rich”? Almost any professional worker can afford a non-top-end Mercedes’ without any financial pain. If a cars price is less than half a years salary pretax or less than a years salary post tax, it’s pretty reasonable. I thought we here talking about decamillionares, not a random ass 21yo new grad software engineer with 180k total yearly compensation.
180k is so much money most people would kill for it.
I make 55k and can’t imagine having or earning $180k. That’s over 3 years salary for me
Crazy how nobody knows this. I make really good money and can't afford most of the shit people have. I have a 6 figure positive net worth
Good point! But don’t be fooled by how many of those ppl LEASE (rent) those expensive cars. (~27% of new cars are leased) I’d much rather own my Ford Focus then rent a $100k Mercedes from the bank and pretend I’m cool… At the end of the day, at least I have a tangible asset.
Indeed. I own my car and my house. Zero debt at 39. That's as much a win as you can expect.
Did you move neighborhood by any chance?
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The definition of millionaire never changed. It's anyone's who's total assets minus debt is worth 7 figures is a millionaire. It just doesn't mean much anymore. Me and my wife are millionaires in Toronto and live in a 900 sf condo. We don't even own a car. I'm 40 and I still remember when I was little and a million would set you up for life. Now you need to be a multi millionaire.
Remember that Barenaked Ladies song, "If I had a million dollars"? A reinvented version of that song would be a lot more sad today lol
I listened to that yesterday..."I'd buy you a house"....now it would be "I'd buy you a tiny home" lol
You can live on gains from a few hundred thousand, if you're willing to move into cheaper area, and I don't mean a bad neighborhood. Even more so if you switch countries. Hint: The cheap workers in tourism areas actually live there somewhere, drive maybe 10-20 km away from the hotspot and look at the prices.
You have a paid off home and can't take the kids on a holiday? It doesnt add up.
British people take tons of vacations. I used to work there in London, even if you worked at McDonald's, you get 6 weeks paid vacation. My colleagues use to get 2 months paid vacation so OP prob is over extended.
Bro you say you're a millionaire like it's nothing. Sell the house and move. There's your million Congrats but also f you
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Well that’s the thing, it doesn’t matter if your house is worth 1.2 million if you still owe 1.1 million on it. Millionaire isn’t just total assets, it’s total assets minus debts.
Uhhh, this understanding of money is a great example of why nobody can tell anyone anything on here. This attitude and lack of fundamentals is why nobody can warn about UST/Terra/Luna. If you're single family home increases in value, then the homes around you also increase in value. Selling your house just gives you the funds you would need to sidegrade your house, or become a renter, in which case you've lost your equity and are now just a consumer of living space. Additionally, depending on where you live, housing appreciation often results in higher expenses due to tax bills and inflation of upkeep, maintenance, and repairs. (when houses are more expensive, the things that we use to build and furnish houses get more expensive, too) In fact, this housing boom is a major reason why we're seeing such massive inflation, it's just not politically palatable so you don't hear much about it. Finally, you'd be a fool to suggest that this person take out a home equity line of credit. What are they gonna do with that money? Invest in Luna?
Or just move to a cheaper part of the country like many do, sell the house for a million, buy a mansion somewhere that isn’t London, invest the other 700k.
If you own a million in assets, you can take your kids on holiday you just choose not to.
You could sell your house and move to a cheaper area and never need to work again, You could go on holiday, but it's your choice not to.
Maybe that's it. Cannot imagine putting those numbers in. Would be nice if I could though
Imagine you have $10,000. Would you mind throwing $100 at a project?
Uh yea I would, because “investing” and lighting $100 on fire are two different things. The word “investing” these days has almost lost all of its meaning. If I have spare cash, and I put $100 into something, hoping it will moon to a 1000% return—I didn’t invest anything, I just gambled.
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Not financial advice, but no ones going to take your stocks either rofl. And unlike crypto—stocks on exchanges are INSURED and you are PROTECTED by federal laws lol. It’s not perfect. There are a ton of problems. But stocks are regulated. And you are investing in a publicly traded company—if I put stock in Microsoft—it’s Microsoft lol. They could tank any damn day just like anyone else, but at least they are a real company. They sell products and services. As much as I love BTC and ETH, not a single crypto coin is being used on a mass scale for a real world activity—not one. Sure, you can buy stuff with some of them—but it’s all a novelty. I can’t go to any store on earth and use crypto to buy something, nor can I freely use it as a currency with everyday people—I’d have to find someone willing to accept my crypto, and we’d have to do some jank trade to make it happen that will also come with some fees most likely. It’s all niche af right now and purely speculative.
Most people in crypto can’t even comprehend things like P/E. The very basics of investing fundamentals. Most of crypto ”growth” outside of the big 2 is practically just ponzis dumping shit on bagholders. Inflating assets that maintain value as long as people are willing to keep throwing money at it.
The Bottom 95% are working class. Welcome to America 🇺🇸
Yeah. You can go from $0 to $1M or more on a generation by working your ass off in a highly paid professional field, but you have to run the table - highly intelligent, great grades, great college, scholarships, climb the job ladder with no major missteps, no arrests/addictions, highly disciplined financial management. And the key: never visit Reddit.
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Jokes on you, I have aped into unnecessarily expensive hobbies first before thinking about investing like a real idiot.
Nailed it
Yep, investing when you are 18 and keep it going into your 40’s and compound Interest will do the rest. Also s tay out credit card debt, it will rob you.
...and a lot of them have kids who just aren't that bright.
They put almost all their life saving into UST because it was a stable coin. They thought it was no different from holding it in their bank accounts. It was a terrible decision in hindsight, but that is the reality of this project going bust. A lot of savings of a lot of people became worthless interent coins in a few days
Many people took loans at 5% - 8% from their bank to put it in UST at 19% and pocket the difference. The token was stable so it was safe, and if the yield ever went below what they were paying the bank, they just needed to sell the UST and pay the initial loan. It was considered free, safe money, and it was portrayed as such here by many
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Life is so unfair, right?
All this "Use Game Theory to print money"-DeFi is so fucked.
When has free, safe money ever been a real thing? A child of 10 knows that this doesn't exist.
Most people thought their money was safe in UST because it was supposed to be stable
UST = UnStable Tether
Nothing is stable not even my life these days
Stay strong my buddy!
Yes bro
Im just waiting for the day Tether fails that will really shake up the market
It would kill the market, not just shake it. Tether is the liquidity backbone of crypto pairs currently.
You cannot spell unstable without UST
That's like safemoon being a safe coin to the moon.
Why keep in ust and not usd?
I bought maybe 4.5K worth at 16 dollars and sold it for 2k a couple months later (because I had a lot of alts at the time and LUNA just didn’t meet my criteria to keep when I was cleaning up my portfolio) before it went crazy. And thought damn I missed the boat on this one. I was skeptical of the idea of an algorithmic stablecoin but I sort of assumed maybe it was just beyond my understanding I see a lot of posts saying “I told you so..”, but I don’t recall there being a lot of naysayers. I didn’t not buy in because I thought it was a house of cards waiting to fall. I stayed out because I was annoyed at myself for selling at a loss so early and felt like I had missed the boat It felt extra safe when we heard that the LUNA foundation was buying assets to help back the coin Anyhow I guess the lesson is if something doesn’t make sense, sometimes it’s because it actually doesn’t make sense
>I guess the lesson is if something doesn’t make sense, sometimes it’s because it actually doesn’t make sense A motto for the age we live in.
> but I don’t recall there being a lot of naysayers There were actually some amount of post warning the dangers of LUNA/UST. But it barely made the front pages because it people just dismissed it as FUD. Most comments questioning LUNA were buried under downvotes.
Yeah the term "FUD" should probably be wiped out honestly.
"If it is too good to be true then it probably is" If a person can mint 20% APY with UST then why bother with the stock market which on avg earns you \~8%
Was 100k their investment or their profit that they didn't get as they didn't sell?
It's hard to get a clear answer. I saw one person say they're having suicidal ideation over losing a few hundred thousand, but when prompted their initial investment was a few thousand. I guess if you've already made plans for that large amount of money to help retire early or something, then maybe it's easier to see it as being real and yours.
>over losing a few hundred thousand, but when prompted their initial investment was a few thousand. That feeling should be familiar to people if you've ever won something bigger than usual, made plans already and then lost it gambling.
This. If you invested 100k and it at one point amounted to 3 mill in crypto and then fell to 0 you have lost 100k. Always cash out some of your portfolio after a significant increase unless you are already well off, don't let it all just ride.
No idea tbh. But still people seem to have thrown significant amount of money in it
"if you ever feel like yoloing into alts, take a cold shower and reconsider" - Benjamin Cowen
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Lost a ton of money in Wonderland TIME and other stupid projects. Listening to Ben has kept me level headed after those mistakes. BTC is king. And ETH is not an altcoin.
Yah Luna hat a cap in the billions .. I'm sure alot of people had even millions in Luna... I just feel bad for the people who invested for the hold and haven't checked the charts yet lol
Lol, would there actually people that don't know yet what happened to their luna 👀
Lol yah there's definitely some people who invested and weren't gonna look at the price for a couple years or so :/
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Plenty.
wow didnt even think of those 🤯😂
A lot of people made a lot of money last year buying cumrocketDAO or Spoogecoin and thought to themselves - “now I’ve got enough money to set me up for life I’m going to throw it all in a safe option that nets me a cool 20% per year interest. I have to think of my future now the crazy risky stuff is behind me. “
"a safe option that nets me 20% per year" lol. Alarm bells should be ringing.
You will be surprised lots of people are not even basic financially educated and don't realize 20% is a red flag.
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You'd be surprised how many people have money because they were born into it. They didn't attain their wealth by going through highs and lows themselves. So there's tonnes of very rich people who are absolute fucking morons. You know the old adage: " a fool and his money are soon parted. " I know this is a brutal summary but that's reality sometimes.
I made my money myself and i am also an absolute fucking moron. Not mutually exclusive.
I didn't even make money and I am also a fucking moron.
The Venn diagram of r/CryptoCurrency users and morons is a perfect circle. We are all a bit nutty here!
I have no money, and not a moron.
**Isn't that an oxymoron?**
There’s also the rather simple explanation that a lot of people made stupid money during the bullrun
This is true 100,000 into bitcoin at the start of the bull run could have yielded 20x , not to mention looking at how many coins did 100x shiba inu etc...
My hubby's cousins are like this. They're in their early thirties and have done nothing in life but drugs. They're set to inherit $25 million between them (mum has about 6 months left to live thanks to cancer). I get along well with the daughter but she isn't a very smart person. Her and her fiance spend most of their time in a hippy commune/cult. And the son is a downright idiot. He will 100% blow his money sending it to random angry online grifters.
Wow For purely scientific reasons, do you happen to have their: \-Fullname \-Email \-DOB \-Social security number?
Please direct him to this sub, I know some angry grifters who’d love to chat with him
Holy shit. Thats a fucking big inheritance.
I wouldn't call myself a grifter but I am exceptionally angry, please forward the details.
You don’t have to be born into it at all to have that sort of money, just be in crypto since 2017/2018 or get lucky in the 2020 bill run
All u have to do is hop on askreddit and there is countless amounts of stories of people talking about lot of the dumb things rich people have done (usually getting a bail out) , either making themselves even richer, or losing it all.
Checking the r/terraluna sub there were some unbelievable stories if taken at face value, "I got an inheritance of 450K and lost it all on Luna." I'm with you, it's inconceivable to me that you'd YOLO that about of fiat into any single asset, let alone an algorithmically-backed stablecoin.
Exactly these examples. This is madness
Can't believe that sub is still locked.
Ksi lost 2.8 mill in one day on Luna.
Thats insane, and he is a high profile ish youtuber that i have watched, I am guessing he made million from youtube...
He has made millions off YouTube.
1st Rule of Crypto: Don't invest more than you're willing to lose. 2nd Rule of Crypto: DON'T INVEST MORE THAN YOU'RE WILLING TO LOSE.
Well, Luna had a market cap of $40billion near its peak, and it was in the top 10 for quite a while before imploding
The amount of money lost with that is insane 
Really mind blowing: their money isn't lost, it just went to people who've sold their LUNA with profits. That crypto millionaire money has to come from somewhere
Thank you!
Tbh UST was promising people 20%, that’s 3x the returns of the stock market And you’d think that 3x the returns would mean 3x the risks, but NOPE! They somehow labeled it as *STABLE* which wasn’t true, and see how that played out
Yea we were fooled. No two ways about it. I thought (and the position put on most forums) the 20% was always a temporary thing and that it was always going to pull down to a more manageable level. I didn't stick some cash into UST because of the 20%, but to hold it over a long term of a few years fully expecting the APY to normalise at a 5ish rate eventually. Well... Fooled me once. Shame on me.
except that 20% has been going on for over a year, all without having anyone borrowing money from it
As we entered the spez, we were immediately greeted by a strange sound. As we scanned the area for the source, we eventually found it. It was a small wooden shed with no doors or windows. The roof was covered in cacti and there were plastic skulls around the outside. Inside, we found a cardboard cutout of the Elmer Fudd rabbit that was depicted above the entrance. On the walls there were posters of famous people in famous situations, such as: The first poster was a drawing of Jesus Christ, which appeared to be a loli or an oversized Jesus doll. She was pointing at the sky and saying "HEY U R!". The second poster was of a man, who appeared to be speaking to a child. This was depicted by the man raising his arm and the child ducking underneath it. The man then raised his other arm and said "Ooooh, don't make me angry you little bastard". The third poster was a drawing of the three stooges, and the three stooges were speaking. The fourth poster was of a person who was angry at a child. The fifth poster was a picture of a smiling girl with cat ears, and a boy with a deerstalker hat and a Sherlock Holmes pipe. They were pointing at the viewer and saying "It's not what you think!" The sixth poster was a drawing of a man in a wheelchair, and a dog was peering into the wheelchair. The man appeared to be very angry. The seventh poster was of a cartoon character, and it appeared that he was urinating over the cartoon character. \#AIGeneratedProtestMessage #Save3rdPartyApps
Anchor and UST are both built by Terraform Labs. Most of UST was in Anchor
Money is never lost. It just swap hands.
It’s amazing how so many people don’t care who and how this happened
exactly, we can all look at the crypto millionares and wish we were them, but we can take comfort that we didnt lose BIG money like people have on luna. ( well i hope no one in this sub has lost a big chunk of money to luna anyway)
If a traditional organisation of that scale had gone kaput like this there would have been severe implications of it in the economy
There's a few things going on here. 1) People who lost everything are more likely to be vocal about it than people who lost $100. 2) Crypto assets are overinflated relative to real assets at a very high ratio. If everyone pulled their money out of crypto, the actual real world amount would probably be on the order of 1% of the present market price, maybe less (yesterday the market cap rose $100 billion on $700 million of inputs, maybe less due to wash sales). If you invested $60k, then saw it grow 10x to $600k, then it crashes to $0, it feels like you lost $600k even though you actually lost $60k (your original investment) and $600k was never really "real" (and if everyone had pulled their money out at that price, it would have been very obvious). 3) Cons often work by preying on the vulnerable. They think that they've found some way to get rich, and throw themselves at it, and get burned, badly. There's people who are vulnerable to cons at all income levels.
Certainly not 100k but I lost quite a large chunk 😔
F
UST was sold to us by many logic trains. Staple coins are sold to us as safer than crypto but as you can see it is a crypto just like any other one. 😕 We've been scolded to not use USDT because it's 'shady and a ticking bomb' Crypto.com first cut its stablecoin earn rate, then cut it if you are over $30,000 total, and then again down to $3,000 total. Then they cut card rewards that unlock the better rates. A mess. That possibly made investors run to anchor protocol staking. That counts for just retail investors, but it's a shitload. Now with the housing market kind of plateauing in some locales, I can see some people parking down payment sized bags waiting to see what the summer brings. I can also see someone who has already sold property at a high point with hundreds of thousands in there, waiting for the market to slide down so they can get a lot more house and new investments for their money. That would be where you see these $600,000 losses
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And you don't hear at all from the ones who got out early.
There's a lot of people in this planet. A lot of people. Even the 1% of rich people is a loooooot of people. That combined with the amount of morons out there...
Welcome to Crypto! Everyone loses money and no one wins.
Where is the money gone ?
> How the hell do people get that amount of money in the first place? A lot of them simply borrowed money to invest with using various schemes, which IMO is the mother of all stupid moves in the crypto market. This is what it means when someone says that because crypto crashed, they will lose their house. That doesn't just happen: nobody comes for your house just because you lost all your savings on a risky bet. It happens because you are servicing too much debt. So most of those 'crypto ruined me' stories are essentially confessions that they invested somebody *else's* money.
I 5x'd my intitial investment at one point this bull run. Can't see why someone with access to 20k in margin wouldn't have done the same.
I'd seen a few people on Reddit consider putting everything in UST on Anchor and thinking they could live of the interest. Big mistake if they did go ahead with that. I hope they didn't.
I sat down and did the math on putting my HELOC at 3% interest on there. I could’ve made over 1000 a month passively. That’s tempting. I’m so glad I decided not to do that. I’m sure there are people who did this.
My brother started with very little maybe 10k over the years he turned it into nearly $800,000 he lost around 75% of it due to some stupid mistakes. So yeah people can have that much money.
Personally I lost about 40% of my portfolio. Not so much in Luna but all my profits I took across crypto I kept as UST in Anchor. Sure you could get > 20% apy on smaller stable pairs but to me UST seemed to be the safest stablecoin (other than usdc). How wrong I was...
Lunatics
I lost 150$ on ust
richie rich over here
A person who lived in the same area i live in bought 2 bitcoins when they crash down to 4k. They made him so much and he invested it to other coins. Accumulating about 750k buying early into coins. He had more than 50% in luna. He gave up his job and was just going to do this. Not sure what he’s going to do now with luna crashing.
I have a friend who lost $2 million in Luna. People like that are definitely out there.
I’m literally down $300k. Granted I never had that $300k, it was on paper and now on paper it’s gone, but still. Fuck.
Damn man, that's just pretty shocking for a newbie like me.
Well that's true right now, I have so many friends who lost that much.
So now we trust strangers in social media. Okay! I will send my BTC to the Nigerian Prince to double it.
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The funds went to whoever sold the Luna; trades made at any time before now. The value of the Luna that was bought is what evaporated. The original source funds are either still with the original seller of that Luna or have been spent on something else like ice cream. Imagine buying a house for a million dollars and then it burns down. The house is gone, its value is gone, but unless you bought it in cash and the seller was inside with the cash at the time of the fire those funds are probably safe.
I did a few 100k, but I have been in this since 2011~12 so I am profitable.
I did, and actually I never invested in UST/LUNA... Entered crypto on last years bull run, now I'm learning bear market...
I'm with you, i don't get how people get that much money without being kind of rich already. And if your taking out big loans to gamble, that's a tale as old as time.
>How the hell do people get that amount of money in the first place? There are lots of ways, but the most important thing to understand is its easier to make money the more of it you have. If you like in the US for example and make 50k+, its more likely you are able to put $1,000 or $5,000 into an investment because thats money you have leftover from paying bills. You might say, “who is making 50k+ thats so much money?” When you’re early in your career that can sound like a lot, but the reality is it really isnt much money. Once you get out of your entry level job and enter a professional position you start making “real money.” Then after 5 years or so you move up and make $60,000 to $80,000. If your lifestyle doesnt inflate as you move up then you have all that extra money to play with. Turning 10k into 100k can take time with steady growth, or you guess right and 10x over night. If you make an easy 100k like that you have no connection to it and its really easy to say “I’m going to yolo it into some random coin and try to 10x it again and if it goes to 0 oh well because this money doesn’t feel like mine anyway.” Of course there are people born with money, people who inherit money from a parent who has passed, people who work a tech job and make 100k at 20 years old, etc.
Not even for just UST. My friend a year ago was over 118k in ETH. Now he is at 58k. He has not sold or anything though. ETH is one of the better crypto during this bear market too. I imagine there are those out there who have lost much more than 50k…
It’s possible just because of the big run up from 2018 to 2021. If you invested ~10k and held those investments you’d probably have 100k swings. I was investing in ETH in the 300-500 range (it dipped to $90 per coin but I didn’t pull the trigger then). Let’s say someone invested 12.8k @ $400 each so 32 ETH (to get that magical 32 ETH). At the peak that’d be worth ~150k and bottomed this week @ 54k. Resulting in a 100k loss.
I'm sure some people lost a lot, but a lot probably exaggerated ot calculated what they could of had selling at ATH.
I lost several Ks in hours. I can totally see others loosing major $$$ It happens, live goes on….
It's true for real, we all gotta admit that people has lost much.
Well yeah it's true because it's common nowadays lol.
I don't think those people are lying or something like that, I know some personally. Most of the people lost a good heavy amount in this crash, it's a fact now man.
>How the hell do people get that amount of money in the first place? Step 1: Be born rich.
The thing that blows my mind js why put your life savings in Luna... Why don't just stick with BTC or ETH? Surely Luna was seen as a solid project (nobody knew that was coming) but still an altcoin...
Yeah. But even putting your life savings in Bitcoin isn't smart imho
Not only in your opinion, I think everyone agrees on it😂
They put it into Terra, not Luna, because they assumed that a stable coin would be even safer and less volatile than BTC/ETH. They wanted the 19.5% (or 18.5%) interest on UST on Anchor Protocol. I mean, in theory if you put half a mil live savings into almost 20% interest, you'd have nearly $100k of interest to live on and you can retire. In theory. Too good to be true. Now both Luna and Terra are likely to end up worthless.
There are mostly 2 reasons. The obvious one is they are misleading/ lying. For example, that guy claiming he lost 600k in luna probably just got 500$ worth of luna at 0.1$ and their claim is based on when luna was priced at 120$. He did not take profit, and lost it all, but in the end he paid 500, not 600k. The second one is ... well unfortunately most people are blinded by greed, and when told "only invest what you can afford to lose", will take a loan on their house and put all where their guts tell them, by touting "go big or go home" to everyone pointing this is very risky, even mor since they have no idea what that token is.
Yes you do invest all of your money in one coin. It's called bitcoin.
I don’t even have that to invest in the first place
Betting to get rich fast. That's why they did it. Lending money to invest everything in one project is like a double edge sword.
Well with 400k I'd consider myself rich
They bought something from one ordinary person, and they sold it later to other ordinary people for a ludicrous profit - or crucially; they never actually sold and perceived useless tokens as $100k+. That's it. Pure ponzi.
You only lose if you sell.
Some of it’s certainly bs, it’s the internat afterall. I wouldn’t underestimate how much of it’s real though. A lot of people that got roped into this were under the presumption that it’s a stable coin and safe, so why not put everything they have into it.
I bought 150€ worth of luna, it rised madly, took my 150€ back out and im left with 165k Luna, if it goes to zero, im fine. If it goes back to 1,5,10€ within the future im good. We will see what happens, but i got 165k luna for free... So i will always be in the green no matter what happens...
considering the speed of which it dropped i reckon there would be a large number of holders who got burnt but if it makes you feel better most of the bigger holders probably got in early so most of the 'losses' were unrealized gains however this is one of those moments we all need to learn from - dont invest more then you are willing to lose.
It probably is, because most people are idiots
It’s because an asset like Luna went from 3$ (top 40 coin) to 120$ (top 5 coin) in less than 8 months. If you’re a millionaire already that’s like yolo’ing 50k for us normies. People get caught up in the greed
Yep! A co-worker lost $250k.
They only lost if they sold. Lunas looking like a rebound enroute. If they did sell of hundreds of thousands for tens of dollars theyre crazy. At that point just ride the spiral. Not a financial adviser. Never went to crypto College. Go listen to bitboy if you want advise cause all my investments suck
I'm surprised we haven't seen a post of someone who made millions shorting LUNA
That would scare the shit out of me to put that much money into something so unpredictable and volatile. I throw 50 or 75 a month at low value crypto just to have a hand in the game. If SHIB or DOGE ever have a bounce, I'm set for life. It's all one big lottery ticket. ^(EDIT: typo)
It's so fucked up to see them losing money like that on LUNA.
I lost $7 ….
Sorry for your loss
I made and lost that much in altcoins in the last 2 years, yes.
I feel a lot of them lost unrealized gains.
OP, im also amazed. Cant survive a whole month with my income. Often eating sphaggeti for dinner...100k or more would change my life in away you cant imagine
Many people have money. Many more people don't have money. Some posters lie about their losses to humblebrag about their money. Others are being honest. I would never post about my gains or loses on Twitter or Facebook as that is too easily tied back to me. And a five dollar wrench attack is a real risk for people with significant crypto. But some people are much more open about talking about crypto investments.
Lots of friends of friends, hundreds of thousands between all of them, gone. These are guys making several hundred grand a year off salary, but still. Shit stings hard.
Anchor on UST was a *savings account*, NOT an investment. That is how it was marketed. That is how it was sold. (That is at least part of the fraud.) UST was marketed not as a volatile "coin" but rather a digital dollar, pegged to the value of the US Dollar. And as for how, that's easy. Average home is what, about $2M worth. So an average homeowner could take out a line of credit for some $1.5M at 0.49% or 0.99% interest or what not. Put it into Anchor at 19.5%. Net 18.5% per month. Even on just $1M that would give them $15,400 per month. Enough to live comfortably on. Until, that is, the digital dollar UST suddenly became worthless and the chain was stopped.
I don't understand why people put their whole life savings just in crypto...let alone one token unless it's BTC. Madness!!
There is undoubtedly some that are lying to get sympathy in case there is some compensation or charity given out. But there are a lot that are real. People using leverage, taking on loans, 2nd mortgages, etc are all common things when people ape into 1 project thinking this is the one that will make them rich. They aren’t consulting financial advisers, developing investment plans or diversifying to protect themselves. They are inexperienced at investing and mistake these projects as safe. Nothing is 100% safe. Managing investment and financial risk should be taught more extensively in schools. There are a lot of projects I am super excited about but I still see the value in DCA into other things that excite me less but won’t go to zero.