‘I lost everything’: Indian youth suffer in crypto crash, but have no plans to stop investing yet

“I no longer have the courage to look at my crypto investments. They were cut in half!

Yumna Ahmad, who works as a communication professional at OP Jindal Global University, has not yet had the courage to face the massacre that has shattered her crypto investment over the past few weeks.

But she is not alone. Globally, the bloodshed that has wiped out Crypto’s $ 400 billion investor wealth over the past few weeks has affected many young Indian investors like her. How did this change their view of investing in this extremely volatile asset class? Now, what will their crypto wallet look like?

However, now there is a small silver lining. Seeing some green shoots, the crypto markets are constantly coming back to life. The global crypto market capitalization, currently at $ 1.29 trillion, was less than $ 1.42 trillion when it began on May 12, 2022.

Even BTC and ETH, commonly considered blue-chips in crypto-versions, saw their values ​​fall by 50% in May. At the beginning of May, BTC traded at about $ 40,713.89. In just two weeks, it has traded slightly below $ 26,000, and is currently trading at $ 29,916.26.

ETH rates are no different. After hitting a monthly high of $ 3,026.42, Ethereum crashed to $ 1,748. At $ 2,016.68, the currency is slowly recovering.

Young peoples are more investing for crypto

Today’s data indicates that about 21 million investors invested in crypto last year. Although India has imposed a strict and steep 30% tax on virtual digital assets (VDAs) such as crypto this year, the excitement of adopting it has not completely faded here. According to Crypto Exchange Gemini, 54% of Indians are first-time investors in crypto space.

Like Prachi for example. An actuarial professional working in Gurgaon, she recently decided to set aside some of her salary to invest in cryptocurrency.

“But I was a little skeptical. It’s tempting to get high returns on your crypto investments, but as someone who has started his investment journey in the financial markets, I wanted to invest more in mutual funds.

So, she started by investing just Rs 1,500 each in ETH, SOL and BTC to see where it was going. Currently, her portfolio is worth less than Rs 500.

There are more people on this boat. Karan Anand, who works as a Deputy Communications Manager at a reputed NCR-based university, has his investment portfolio of Rs 7,00,000 reduced to less than Rs 3,00,000.

“I invested heavily in coins that I think have strong fundamentals, such as Ethereum, Cardano, Solana and WinkLINK, one of the first DeFi projects to operate on the Tron network. As it acts as a link between real world information and uninterrupted availability of blockchain, I thought it would be a good investment, ”he explained.

Luna Trouble

The talk in the city during last week’s crash was the de-pegging of the Stablecoin TeriusD, followed by the beating of its sister currency, the Luna. TERUSD lost 1: 1 peg to the dollar last week, leaving investors panicking.

Since TerraUSD is an algorithmic stablecoin, more LUNA needs to be created to restore and restore the equilibrium of the habitat. It caused its circulation to soar, and its value dropped by about 99.99%. Right now, Luna is struggling to survive on $ 0.0002102. A month ago, its price was a whopping $ 97.28.

Even TerraUSD, which is currently trading at $ 0.0577, is far from reaching the required $ 1 mark. Figures from leading crypto exchanges indicate that about 2.1 Indians lost money when Luna reached the bottom. Suryakant Sharma, who works as a senior operations associate at ShareChat, was one of them.

“I had invested heavily in Luna. I lost Rs 1,75,000 after being delisted from all Indian and global crypto exchanges. I lost everything, ”he lamented.

Still, Sunflower is ready to reinvest in crypto if it finds a good opportunity. “There is a huge potential for high income in this area and I want to continue exploring it,” he notes.

The system is the way to go

There are also stories of vigilance. Shivam Srivastava, an MBA student and businessman from Narsi Monji University in Mumbai, saw the alarm bells in the distance before the accident.

“I had a bad feeling about all the global markets, everything was wiped out at the beginning of the Russian occupation of Ukraine. I told my friends to leave the crypto market,” Srivastava said.

Others, such as Nilesh Maurya, who works in the financial sector, have argued that it is not for a complete exit like Shiva, but rather for a systematic plan.

“I lost about 45 percent of my entire portfolio. But I invest systematically and have a segregated portfolio. Half of it is earmarked for investment and the other half for trade. So, my investment, which was worth $ 10,000, is now down to $ 6,100, ”he said.

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