The author lost $90,000 in just two days while investing in a stable coin called UST. The coin was supposed to stay at one dollar but started to lose its value, going down to 98 cents. The author didn’t sell it when it was at 92 cents, then saw it drop to 32 cents overnight. They eventually sold it at 38 cents. The author realized to not invest money they can’t afford to lose, gain money slowly but potentially lose it quickly, and that nothing is too big to fail in investing.
The Story of Losing Ninety Thousand Dollars in Two Days
Investing in something new can lead to great financial rewards but there is always a risk. This was a lesson learned the hard way by one investor who lost ninety thousand dollars in just two days. Here is the story and some key takeaways to learn from it.
Investing in the UST Stable Coin
The investor in question was investing in something called the UST, which was a stable coin. A stable coin is a digital currency that is pegged to a stable asset, in this case, the US dollar. It was supposed to stay at one dollar, but it began losing its peg and went from one dollar down to 98 cents.
At the time, the investor had about 130,000 dollars in it, which went down to 70,000 dollars. As the price went back up to 92 cents, the investor still did not want to sell it, thinking that it would come back to one dollar eventually.
The Painful Loss of Sixty Thousand Dollars
Sadly, the investor was wrong as the price fell drastically to 32 cents. At this point, the investor sold at 38 cents due to the mental anguish of watching it plummet. Although it was a painful decision, it seemed reasonable at the time when there were too many problems with the coin.
The coin did eventually go back up to 80 cents, but as it later fell again, it was nothing compared to the first loss. Now it’s at two cents, and the investor has lost a total of ninety thousand dollars.
The investor learned a few things from this experience that can be helpful to others. Firstly, never invest money that you can’t lose. Although this was an investment for the investor, it’s important to remember that investing can always be a risk. Secondly, gaining money slowly is one thing, but losing it quickly is always possible. Finally, nothing is too big to fail in investing. Whether it’s a new digital coin or an established company, the market can be unpredictable, and investing can always lead to losses.
In conclusion, investing can be tricky, and it’s not always easy to predict what will happen. Always remember to invest with caution and never put yourself in a position where you can’t afford to lose.