Crypto User on Reddit Reveals Massive Losses Through Substratum, Admitting $100,000 Mistake Was His Fault
The cryptocurrency industry, much like the stock market, is subject to the changing prices. Losses can happen, based on the actions that someone takes in the market, and if their choices are smart ones. That is the unfortunate lesson learned by one Redditor this week.
The Redditor, known as “ZoranSlaveski,” explained that the purpose for the thread was following a comment that he made about losing over $100,000 in cryptocurrency. He starts off by saying,
“Note that I'm not blaming anyone else for this, it was my own stupidity and I should have stuck with Bitcoin instead of gambling so much on an altcoin, but sad to say I had drunk the kool-aid and basically I fell for a scam project.”
His decision was to invest in a platform called Substratum, which supports a decentralized internet, as ZoranSlaveski describes. He said he saw that the price was going down last year, finding the low cost as a perfect opportunity to get involved. He ended up investing $115,000 in the ERC20 tokens from Substratum, but ultimately sold them for $7,000, resulting in a loss of 94%, due to the necessity for “emergency home repair.”
Soon, even though ZoranSlaveski was optimistic about the coming reprieve from the bear market, his hopes were obliterated when Binance chose to delist it, which he said, “made me realize it was always a scam.” ZoranSlaveski continued researching the platform, saying,
“After that I looked into it more and found out about the leader gambling away the last ICO money, shorting ETH at the bottom, the fabricated GitHub commits, fake partnerships, the flaw that lets the devs print unlimited tokens (same problem as PRL). Plus, lots more red flags that I just didn't see before. I also found out it can't even do decentralized Internet because it's reliant on centralized ISPs… SMH.”
Not only are the losses substantial, but the coins from Substratum are not even listed in the top 300 cryptocurrencies by market cap, despite being at around the 50th position during ZoranSlaveski’s original investment. Even though he told at $7,000, he believes the numbers would have been even lower if he’d waited.
Unfortunately, this is a story that is too often told by newcomers to the cryptocurrency industry. They do not have enough experience or knowledge to know what to look for in a scam or even in a failing crypto asset. While the bear market looks like it should be coming to a close, considering that Bitcoin finally jumped above the $4,000 threshold earlier today, there’s still a lot of caution to take with such substantial amounts of money.
The silver lining for this user is that it doesn’t look like one severely bad experience has discouraged him, since he said,
“I’ll buy crypto again.”
The losses sustained will end up keeping it out of the market “for another six months or more,” but at least he understands that the entire market is not made up of scams, which is a story that crypto opponents would likely want to keep quiet as the Bitcoin ecosystem continues to go through its ups and downs, growing pains all around.