“Feel absolutely sick.” That’s how one trader described their feelings after seeing their $15 million portfolio disappear. In 2021, the crypto market was budding, and for many, it felt like the best investment choice they’d ever made. But by 2023, bad investments in Luna, FTX, Celsius, Freeway, and Yield app left some with nothing but deep regret.
The $15 Million Rise
Our trader wasn’t alone in riding the bandwagon of the 2021 bull run. Back then, Luna and FTX were among the hottest names in the crypto space. Luna was like a golden goose, creating millionaires almost overnight with its rapid rise. Meanwhile, FTX seemed like the safe bet — a major exchange with top backing and celebrity endorsements. But as they say, not all that glitters is gold.
I had a $15m portfolio in 2021. Lost everything thanks to being in Luna, FTX, Celsius, Freeway and Yield app. Feel absolutely sick.
— Coinfessions (@coinfessions) September 20, 2024
With more than a few zeros in the portfolio, the trader made calculated moves in the hopes of locking in even bigger profits. Their level of confidence led them to invest in Celsius, Freeway, and the Yield app — platforms promising huge yields and passive income. But what seemed like solid plays soon turned into a house of cards.
The Collapse: Luna, FTX, Celsius, Freeway, and Yield App
One by one, the pillars holding up this $15 million portfolio started to crumble. Luna was the first to fall. In May 2022, its stablecoin, UST, lost its peg to the dollar, causing Luna to nosedive. Investors were left holding the bag as the asset dropped 99% in value.
Then came FTX, which was touted as one of the most reliable crypto exchanges. In November 2022, FTX collapsed under the weight of mismanagement and fishy practices. Users scrambled to withdraw their funds, but it was too late. The company filed for bankruptcy, leaving investors empty-handed.
Celsius, a lending platform that offered high returns, became popular during the crypto bull run. However, in July 2022, it went bankrupt because it couldn’t keep up with the market conditions. Similarly, both Freeway and the Yield app promised users great returns but failed to follow through, stopping withdrawals and leaving users’ funds stuck.
In the span of a few months, this poster went from having a portfolio they were proud of to absolutely nothing.
Hard Truth
The harsh truth is that the crypto world offers no guarantees. The temptation of high returns can blind even the savviest investors. Platforms like Celsius, Freeway, and Yield app promised big, but when push came to shove, they couldn’t back up those guarantees. It’s a brutal lesson in risk management.
Crypto investment is a bit like playing with fire — when you get too close, you can get burned. The red flags were there — overly generous yields, opaque operations, and a lack of transparency from these companies. But, as many know, the thrill of chasing profits can sometimes cloud judgment.
Doing more due diligence might have saved them from this disastrous outcome. Invest wisely, don’t put too much faith in big gain promises, and most importantly, always be prepared for the worst, as our trader reflected.
The post From $15M to Zero: How One Trader Lost It All in the 2021 Crypto Collapse appeared first on Coinfomania.
