the ‘crypto crash’ destroys many young people

Last May 12 can already be considered a ‘black Thursday’ for cryptocurrencies, which the market lost more than 193,000 million euross all over the world in one day. The Luna token lost more than 99% of its value and pulled down major digital currencies as Bitcoin and ether. Luna would be the ‘Lehman Brothers’ of cryptocurrencies. The ‘accident’ led to the emergence of a new social class in two days: the ‘crypto-ruined’. Many of them young, some of them trapped in so-called crypto culturesthat is, of the 4.5 million people in Spain who have invested in cryptocurrencies, one million are estimated to be young people under the age of 25.

In 2021, cryptocurrency transactions in Spain reached 60,000 million euros, according to data from the Bank of Spain. 4.8% of GDP and 2.7% of total financial assets, in Europe only behind the United Kingdom, France, Germany and the Netherlands. But the collapse of cryptocurrencies is caused by the global capitalization Digital currency of this kind has declined by $ 1.4 trillion since it peaked in November 2021.

This fever of the most popular cryptocurrencies, bitcoin, began to spark ‘digital gold’ in the middle of the pandemic, in the autumn of 2020, when which was listed on the financial market at $ 13,500. A year later it surpassed $ 60,000. Due to the explosion in its value it became rich almost overnight. However, this week the cryptocurrencies have suffered a crash, to the point that on Thursday they were trading below 26,000 dollars (25,000 euros). This was raised to $ 29,000, which gives an idea of ​​the volatility of this type virtual currencies as the European Central Bank, for example, has already warned.

And with this general panorama from the Association of People Affected by Cryptocurrencies led by lawyer Emilia Zaballos or the psychologists themselves warn that addiction to cryptocurrencies has become a “new gambling disorder. more dangerous than gambling or sports betting. For example, from the official college of psychologists it has been clarified that “speculation with cryptocurrencies has a high potential for addiction and confirms that they get more young people in their consultations whose addiction to sports betting has been replaced by virtual currencies, with the only goal is to earn money easily and quickly ”.

“Attracting thousands of young people by pledging to make millionaires with virtual money”

“I invested more than 3,500 euros, almost all of my savings,” says Jaime, 21, from Madrid, from a working class family, who is studying Law at Complutense University and whose parents that money for him. studies. “Today I have lost more than half. Now all you have to do is wait to see if the cryptocurrency market recovers as it does I have ruined my family. If there is a strong fall, it is likely to improve ”, he is confident.

But it’s not just a potential individual pathological gambler. Nearly 500 families in Spain have spent weeks denying the “crypto-sect” that attracts thousands of young people with a pledge make them millionaires with virtual money”. They have already collected more than 50,000 signatures to close the school of cryptocurrencies, IM Masters Academy, which “actually recruits young people so that they have in turn directed others to the ‘academy’.” Yes, in “a clear example of a pyramid scam”, and “paying between 150 and 200 euros per month“They promise to become billionaires, make more friends and become rich without working by investing in cryptocurrencies”. Two months ago, eight members of this academy were arrested by the police for fraud, although they were later released and continue to operate, and a few days ago this same ‘school’ was set up to convention in Badalona with nearly 10,000 attending.

“My daughter’s name is Ester and she’s 17 years old,” explains Carmen, a mother from Madrid. “He told me he was signing up for an investment and business academy. I gave him 200 euros to teach and the girl began to change. She was always angry with me, stuck in her room with the computer … I got worried and found out about IM Mastery Academy. What I saw scared me and I told him to stop. The next day he left home and I think living in an apartment with other members of the sector. I’m desperate because I’ve lost a daughter ”, says Carmen with tears in her eyes.

Pedro and María also late realized what was happening to their son, who “was very curious for a few weeks.” Several children stopped the 16-year-old boy on his return from school. “They talked about investments and he always liked economics. They invited him to a meeting in a hotel … And, after giving him money to sign up, it was too late by the time we realized what our son was up to. He told us we were failures, he left the institution, our house and he left. We haven’t heard from him in a month and a half. ” Crash virtual currencies and crypto cults.