The recent insolvencies of Celsius Network and FTX have sent shockwaves throughout the cryptocurrency community, leaving many people devastated. For many, cryptocurrency is seen as a way to secure their financial future, but the recent events have led to devastating consequences for those who had placed their trust in these entities. The Celsius Network alone had over 1.7 million people #Unbank themselves. (Voyager Digital has been excluded from this article, but can easily be added.)
Many people who invested into cryptocurrency and housed their digital assets within these exchanges have lost everything, including their homes and businesses. They were unable to repay loans or access their assets. The emotional toll of these losses cannot be overstated, with reports of people struggling with depression, anxiety, and even suicide all across social media. One such case involved a grandmother who was said to have taken her life after losing her retirement funds which she transitioned into #Bitcoin, #Ethereum and other premium digital assets.
These tragic events highlight the need for greater awareness of the mental health impact of financial losses, especially in the cryptocurrency community. Crypto never sleeps. The market is turbulent and volatile. Many once trusted entities and leaders within the industry have turned out to be Ponzi schemes and criminals. Business Anthropologist Anthony Galima states: "Anxiety, depression, 'death threats' to literal suicide should make everyone understand the severity of this situation. We should not trivialize or sweep under the carpet very real pain, suffering and loss people are feeling. We must bring into the light, bring into the discussion the psychological pressures and ramifications many early crypto pioneers are undertaking. These cries for help should be a catalyst for immediate responses and remedies." Business Anthropology and mental health professionals are calling for greater support and resources to help those who have been affected, including counseling services and financial education programs. In addition, there is a growing movement calling for greater regulation and oversight of cryptocurrency exchanges and wallets/DeFi to prevent similar situations from happening in the future. The hope is that with better protections in place, investors will be able to make more informed decisions and minimize the risk of financial losses.
While the losses suffered by those affected by the Celsius Network and FTX insolvencies are devastating, it is important to remember that there is support available. Those who are struggling with the emotional impact of these events are encouraged to seek help from mental health professionals, family and friends. The cryptocurrency communities must come together to support those who have been affected and work towards a better future for all.
Cryptocurrency is not "one community," but at this point in time very tribal communities. People are extremely passionate about the projects and processes they love. When a Centralized Exchange goes under, the proponents of Decentralized Finance are quick to attack the victims of these insolvencies. The same is true of the converse; when individuals who use digital wallets and DApps click on a malicious link and have their wallets/liquidity pools drained; you'll hear "Well, that's why they should use Coinbase." It is very easy to be unkind and "bully" within various social media platforms.
The recent bankruptcies and insolvencies serve as a reminder that while cryptocurrency may offer the potential for financial gains, it also carries significant risks. It is vital that we address the mental health impact of these losses and work to prevent similar situations from happening in the future. To say: "Never invest more than you can afford to lose" is asinine. But to know that at any point in time, you can lose all of your digital assets housed in any one location, and brace for that potentially happening, is wise.