That's the first question I asked myself when I heard about it.
What's this all about? It's about the latest cryptocurrency disaster that's resulted in thousands of people losing their hard earned money.
THE MIGHTY 20
Let's start right from the beginning. In fact, let's make it sound like one of those novels we read when we were young and free.
Once upon a time, there was a person in a faraway land [pretty image of Butterflies and green fields goes here]. Let's call this chap Bhorongi. Bhorongi was like any average person - always looking for a way to turn 50 cents into a dollar.
His friend, Bharangizha told him about this new fantastic way to earn free money. Bharangizha told Bhorongi about how people made millions through the crypto coin, Bitcoin and how a new opportunity was present that would make Bhorongi rich super quickly!
Like any normal person, Bhorongi got interested. He listened as Bharangizha mentioned how there is a special type of crypto coin called the LUNA / Terra (UST) stable coin that was pegged to the US dollar. 1 UST = 1 United States Dollar.
Through the use of the Anchor protocol, any average joe could earn 20% per year. Bharangizha then showed Bhorongi how he could make 4000 for free in a year by just taking a 20 000 USD loan, buying the LUNA / Terra stable coin and making use of the Anchor protocol.
With just a few clicks, Bhorongi would be able to buy a Car, and pay back the 20 000 USD loan with interest in just 2 years. Who would say no to that?
Bhorongi got to work. He came up with a super clever "business plan" and through a few connections, he managed to secure the 20 000 USD from some loan sharks. Loan sharks are always scary, but what was there to worry about?
The Anchor protocol's offer would allow him to pay back the loan shark's crazy rates AND get him a second hand ex jap. He quickly met up with Bharangizha and put his money to work.
The Steady Rise
After seeing the Anchor protocol at work for a year, and raising 4000 after doing absolutely nothing, Bhorongi felt on top of the world. "Money is easy to make " he thought to himself .
He started to create another "business plan" to get more money now that he had seen the potential of the Anchor protocol powered by the LUNA / Terra (UST) algorithmic stablecoin. At this point Bhorongi was a LUNATIC. And yes. People who were fans of the LUNA coin actually called themselves this.
The Lonely 1
As you have probably predicted, Bhorongi lost money. The value of the LUNA / Terra coin dropped from 1 UST = 1 USD to 1 UST = 0.05902 USD as at Sunday 22 May 2022.
To put that into perspective, Bhorongi put in 20 000 USD. Of that 20 000, As of today, Sunday 22 May 2022, Bhorongi is left with 1 181 USD.
How is he going to repay the loan sharks?
Lucky for us, Bhorongi is a fictional character. However, there are REAL people who took REAL mortgages worth several hundred thousand dollars and their lives have been completely devastated. Just try and imagine what they are going through now.
The Lucky 5
Well, just before we end this sad story, let me share a few wise lessons I learnt from a book - the richest man in babylon.
THE FIVE LAWS OF GOLD
- Gold cometh gladly and in increasing quantity to any man who will put not less than one tenth of his earnings to create an estate for his future and that of his family.
- Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
- Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
- Gold flees the man who forces it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
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