Ethereum lost 20 percent of its value in just 24 hours while Bitcoin, the original crypto, plunged by 11.24 percent. Luna, meanwhile, lost a whopping 98 percent of its value virtually overnight and is now effectively at zero.
Experts are calling it a "crypto winter" as investors' worst fears are coming true. It turns out that even so-called stablecoins are not so stable after all, and are leaving many investors penniless.
In one day, more than $200 billion was wiped from the cryptocurrency market as a whole. And all signs point to the legacy stock market doing the exact same thing.
Amazon's stock value has plummeted by about 30 percent in the past month, and before that, it was Netflix and Facebook. The S&P 500, the Dow, and the Nasdaq are also all down majorly since the start of the year.
"Ethereum has now lost more than half of its value this year, Bitcoin has shed a third of its value since January and Luna with 99 percent of its value wiped out in the last 48 hours with suicide hotlines pinned to the currency's Reddit page as a result," reported the Daily Mail (UK).
"Popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt due to the crash."
The entire financial system is on the verge of collapse
Throughout the plandemic, record low interest rates combined with prolonged lockdowns and sheer boredom drove many new investors into the markets, both for cryptos and stocks.
Just about everything was going up during that time, so a lot of cash ended up getting dumped into the system. Stablecoins, the world was told, provide safety and security in an otherwise volatile and highly unpredictable crypto environment.
Well, a few years have passed since then and there does not appear to be much stability with some of the stablecoins anymore. And now there are concerns that even Tether, the world's largest stablecoin, is decoupling from the dollar.
This is a global financial disaster in the making. Many fully expected Wall Street to crash, which now appears to be doing, but cryptos were supposed to be the safe haven alternative to traditional financial markets.
Now, it appears as though there is no safe haven at all, except to bet against the markets and profit the whole way down.
The Nasdaq experienced its sharpest one-day decline since June 2020 right around the time that the crypto-sphere entered meltdown mode.
"The index, which features several high-profile tech companies, finished May 5 trading at $12,317.69, with shopping sites such as Etsy and eBay driving the fall," the Daily Mail revealed.
"The two companies saw their values drop 16.8 percent and 11.7 percent, respectively, after announcing lower than expected revenue estimates."
Elon Musk's Tesla empire fell by 36 percent last month just as the billionaire grifter announced plans to purchase Twitter.
"The electric car manufacturer is now trading at $732 (£600), a dramatic drop from $1145.45 (£937.69) a month ago," reports explain. "It hit an eight-month low today, briefly dropping below $700."
Many will recall that Musk heavily pushed his Dogecoin scam, which saw a pump-and-dump last winter. Then, right before Musk was scheduled to appear on Saturday Night Live (SNL), Doge took a tumble and has never recovered.
"The fall of these stocks is fueling fears that the 'dotcom bubble burst' of the early 2000s could be about to repeat," the Daily Mail reported.
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