Yes, we understand. The crypto market in its current state is absolutely devastating. Bitcoin is down over 50% from its all time high, going as low as $28k, Terra has dropped by over 95%, and the TerraUSD Stablecoin de-pegged from $1 and is currently trading at around $0.70. Ultimately, if you sell your crypto now, you'd be at an even bigger loss.
So, let's talks TerraUSD, the stablecoin that is supposed to be 1:1 with USD, dropping by over 60%.
On Wednesday, the two primary coins of the troubled crypto project Terra went into an absolute decline. TerraUSD is designed to keep its value at a 1:1 ratio with the US Dollar, but it was trading as low as 25 cents recently.
TerraUSD's "parent" cryptocurrency, or, the blockchain its on, is called Terra. Just recently, Terra fell below 90 cents before rebounding to $1.20. In the last week, the currency has lost almost 99% of its value and currently has a lower market value than its stablecoin child token.
But, remember, TerraUSD isn't like the average stablecoin. It is an alghorithmic stablecoin that uses a sophisticated system on the blockchain to modify its coin supply in accordance with the amount of holders & the amount they're holding. However, this alghorithm showed severe imperfection after the coin's value nosedived during a large sell-off event. So, because this stablecoin uses a unique alghorithmic system to maintain its peg to $1, this catastrophic event (the price plummeting) wasn't totally unexpected. If you're currently a holder of TerraUSD and was greatly affected by this sudden and strange depeg (no longer pegged to $1), we think you should hold onto your TerraUSD coins, wait for the price to recover (back to $1), and switch to a safer stablecoin that is 100% backed by real USD, such as BUSD, aka Binance USD.
If you're looking to buy some Terra because its value just decreased by 98%, we think it's a good idea to reconsider doing so, because, in order for Terra to fix their TerraUSD stablecoin (get the price locked back to $1), they will, from what we're seeing, need to print/mint new Terra tokens out of thin air. This adds to the total coin supply, and, as a result, decreases the value per coin. So, we think that by investing in Terra now, you'll only lose money, unless you hold onto the coin for the long-term. But even then, there's absolutely no guarantee.
As for other coins, we know they're tanking in value. That's just how the crypto market is. If the thousands of early Bitcoin investors could get through it, you can too. Just remember to not "panic sell" your cryptocurrency, because, as mentioned, it will ultimately result in an even bigger loss. If you're stressed out because of this crypto market crash, try to temporarily remove your crypto wallet app/software, and do not look at any market prices for a few weeks. That way, you'll get some peace of mind.
Keep calm and don't sell.