YouTuber and Gogglebox star KSI lost $2.8 million in the cryptocurrency Luna crash yesterday — admitting he has a gambling addiction.
The British rapper, who started out with gaming videos, tweeted on his dedicated social media crypto account that the Luna he bought for $2.8 million was worth just $1,000 at 3:35 p.m. yesterday.
The drop yesterday was part of a broader crypto downturn that wiped more than $1.5 trillion in value from the markets.
Bitcoin and Ethereum prices started a rally today, with their prices rising 8.8 percent and 7.27 percent respectively.
The British rapper tweeted on his dedicated social media crypto account that the Luna he bought for $2.8 million was worth just $1,000 at 3:35 p.m. yesterday.
KSI tweeted, “My $2.8 million is literally worth $1000. HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHA Yes, I’ll pack this.
The YouTuber has reportedly suffered significant losses in the cryptocurrency market before – he lost £7m in a Bitcoin crash in July 2021 before warning of the dangers of investing according to the Mirror.
If KSI had bought its 157,357 Luna for the reported $2.8 million, its purchase price would have been about $17.79 per coin.
At this price, KSI could have cashed in on its $13.4 million investment when Luna’s price hit $85.13 last month.
KSI made its reported $15 million fortune shooting videos of FIFA football game, racking up 23.8 million subscribers to its YouTube channel in a decade.
Luna digital coin was trading at $0.0204 apiece at the time of the YouTuber’s tweet yesterday – after trading at $80.49 just a week ago.
The fall had a long way to go with the so-called ‘stablecoin’ now trading at 0.000057, rendering it nearly worthless.
KSI showed its holdings in Luna, showing its 157,357 Luna – worth $1,000 . yesterday afternoon
Luna’s crash came after the currency lost its peg to the dollar this week.
The drop below $1 per coin, causing prices to fall dramatically as the industry panicked (similar to a run on a bank).
The coin, also known as Terra, has lost more than 99 percent of its value in the past 48 hours.
“The Terra incident is causing panic in the sector as Terra is the third largest stable currency in the world,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
But TerraUSD “failed to keep its promise to maintain a stable value in terms of US dollars.”
After previous crashes, the crypto market has defied people who wrote off financial assets as dead and recovered, only to reach new highs.
During the pandemic, record low interest rates intended to stimulate economies led investors to buy riskier assets such as cryptocurrency with higher returns.
Since skyrocketing inflation is driving interest rates up to secure savings, these assets are being sold in favor of safer government bonds – which will yield better returns.
The Bank of England raised interest rates by 0.25% on May 5 to a 13-year high of 1%.
The Federal Reserve also raised its interest rates to 1 percent on May 4 — with further hikes expected to ward off the worst effect of inflation.
The NASDAQ experienced its sharpest one-day decline since June 2020 earlier this week, and the ensuing crypto hit implies increasing integration between crypto and traditional markets.
The index, which includes several high-profile tech companies, ended May 5 at a price of $12,317.69, with shopping sites like Etsy and eBay taking the fall.
The two companies saw their values fall 16.8 percent and 11.7 percent respectively after announcing that sales were lower than expected.
Previously high-flying technology stocks have begun to fall in value dramatically in recent months – fueling fears of a broader economic crash and making investors less likely to buy assets.
Elon Musk’s Tesla is down 28.79 percent in the past month amid news of the eccentric CEO’s attempts to buy Twitter.
The electric car maker is now trading for $728 (£595.82), a dramatic drop from $1022.37 (£836.74) a month ago.
The YouTube Star Admitted That Crypto ‘Doesn’t Help With’ [his gambling] addiction’
It hit an eight-month low yesterday, briefly slipping below USD 700.
Musk, an outspoken proponent of cryptocurrencies, has heavily influenced the prices of Dogecoin and Bitcoin, and had at one point said the company would accept Bitcoin for buying its cars before scrapping the plans.
Musk’s frequent tweets on Dogecoin, including his calling it the “people’s crypto,” have turned the once-obscure digital currency, which started as a social media joke, into a speculator’s dream.
The panic over the future of crypto led to slower transactions on the cryptocurrency exchange Binance.
Crypto traders complained about the ill-timed “scheduled maintenance” Binance announced earlier on Thursday – with some social media users accusing the company of a deliberate ploy to prevent them from trading their assets.
EToro global market strategist Ben Laidler said: “Since the market bottomed out on March 23, 2020, Dogecoin has perhaps surprisingly led price performance, narrowly outperforming Tesla.
Meanwhile, bitcoin, the largest crypto asset on the market, has outperformed other major technology stocks despite its recent dip, beating those of Apple, Amazon and Meta.
The price of the token jumped about 4,000 percent in 2021, after Musk posted a series of memes promoting the prank currency.
Delivery giant Amazon has seen its price fall 31 percent since April 13, with its share reaching $2138.61 (£1750.30) earlier today – down from $3110.82 (£2545.99).
The fall in these stocks is fueling fears that the ‘dotcom bubble’ of the early 2000s could be repeated.
In the late 1990s, the increase in computer and Internet access led to large-scale speculative trading in Internet companies.
The interest caused companies with the suffix ‘.com’ to be highly valued.
After the US Federal Reserve raised interest rates after the boom ended in the 1990s, speculative trading fell and the dotcom bubble burst, causing values to plummet.
The amount of business being done by crypto exchanges, which contain the “blockchain” ledgers that record transactions, is already falling sharply.
Despite the outlook, crypto traders have taken to the platforms on social media to poke fun at the crash, encourage others not to sell, and in some cases mourn their losses.
The r/terraluna subreddit was inundated with several posts from investors noting their losses — some saying they could lose their homes or lose their savings.
Administrators of the online investment group even had to put suicide hotlines at the top of the investor forum.
The acronym ‘HODL’ – meaning Hold On for Dear Life – has been used in several of these memes after it gained popularity in previous crashes when traders bet their investments on the coins that are recovering.