Olajide “KSI” Olatunji (28) is a British rapper, who is also known as an amateur boxer and gaming YouTuber for the FIFA series. Recently, he has been active in the “cryptocurrency” sector. In an attempt to profit from the crash of the currency “LUNA”, the 28-year-old gambled and suffered a huge loss.
Who is KSI?
- KSI started on YouTube in 2008, when he was still a teenager. He uploaded videos about FIFA games from his bedroom at his parents’ house. When he made enough money from the videos to live on, reportedly more than his teachers, he dropped out of school.
- Subsequently, the YouTuber began a career as a rapper and was involved in a variety of commercial projects: in 2020, he was estimated to be earning about 15 million Euros a year.
- KSI became perhaps best known for popularizing the trend of “celebrity boxing” on YouTube. In 2017, he had a Twitter feud with another YouTuber, which eventually led to a boxing match in 2018. The fight sparked a hype that eventually led to further boxing matches with even bigger YouTubers. This trend also arrived in Germany in 2022.
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YouTuber aims to profit from LUNA’s loss
Here was his investment: The YouTuber KSI has been in a crypto fever for a while. In recent days he first bet on a decline in the price of Bitcoin. At the same time, he noted that the cryptocurrency “LUNA” was undergoing a massive crash.
On May 10, he then posted:
“Call me crazy, but I just bought a hell of a lot of LUNA.”
Apparently, KSI saw an opportunity to profit from the significant loss of the coin “LUNA”. In the days before, the price of LUNA fell from about 80 € (May 5) to about 30 € (May 10).
As he later stated, KSI had purchased LUNA currency worth $2.8 million.
“Bought the dip and lost”
Here’s how it went on: KSI hoped that the price of LUNA would recover. But the opposite was the case. Within a few days, the price of LUNA fell off a cliff: from 28 € it dropped to 0.00001 € in just a few days.
By May 12, KSI posted that his investment of $2.8 million was now worth only $1,000.
Crisis of trust in “stablecoin” triggers death spiral
Where did this crash come from? The crash of LUNA is referred to as a “death spiral”.
The price drop appears to be linked to the loss of investor confidence in the “stablecoin” TerraUSD.
A “stablecoin” is a cryptocurrency that is pegged to the value of a real currency: in this case, the US Dollar. The idea behind the stablecoin was that it wouldn’t fluctuate as much as other cryptocurrencies, but rather be a “safe haven”. However, it was doubted early on that the concept would work.
When the peg of TerraUSD to the Dollar actually broke and could not be balanced, both currencies entered into what seemed to be an unstoppable downward fall. With the confidence of investors in the stability of the currency dwindling, its value also sank to near zero (via businessinsider).
Money was the driving force of my life – Today I am at peace with myself
How does KSI react? He is almost euphoric about the loss of money. He can only laugh.
In a post, he explains: Money used to be the driving force of his life. He constantly swung between euphoria and depression.
KSI has made a lot of money and lost a lot of money, so he became numb to it.
However, he is now at peace with himself. The high loss is okay. At least he is not dead, has family, friends, and a strong work ethic. He is better off now than he was a year ago.
“Money isn’t everything,” only millionaires can say that
How do his fans react? Many of KSI’s followers express their sympathy. However, some of his fans, who apparently had invested themselves, react quite differently than he does. One user writes:
“Sorry, but what you are writing shows absolutely no tact. Many of your followers have lost a lot of money and will never get it back. But you enjoy the luxury of being a multi-millionaire; you will always be fine.”
Cryptocurrency in the influencer space is a sensitive topic. Many followers trust “their favorites” with their investments and follow them:
YouTuber is said to have made 11 million € because fans trusted him while he scammed them.
