Binance CEO makes a statement on the suicide of a 20-year-old investor who lost $ 730,000
This statement was made after a 20-year-old person tragically committed suicide after losing $ 730,000 in the popular retail app Robinhood.
Alex E. Kearns, 20, who studied at Nebraska University on June 12, 2020, committed suicide. Her family found a small note on Alex’s computer that wrote: “How is it possible to make a million dollar transaction using a leverage for someone who has no income at the age of 20?”
Unlike many people, Alex went into stock trading using the quarantine era Robinhood retail app.The reason for this suicide was revealed by Alex’s cousin Bill Brewster. He said Alex was curious about the investment recently and opened a Robinhood account: “It could be said that he was enjoying the market at the beginning, but he lost his chance towards the end and saw that he owed 700,000 dollars to the company in his Robinhood account. He could not bear the emotional stress he was exposed to and took his own life. ”
It was really difficult to see an increase in the stock markets during the past pandemic months and this period caused a storm in the world economy.S&P 500, DJI, Nasdaq and other major indices jumped up just two months after the sharp drop in March, and some values reached their all-time highs.Companies like Hertz Global Holdings caught a 1000% increase in share prices as investors flocked to the market.
Rising values can easily drop
Pandemic caused many people to have financial problems. Along with many companies, millions of workers had to stop work, some companies still could not start working.
In crisis situations like this, it is no surprise that someone who does not have experience in doing other jobs enters the stock investment business, especially with an easily accessible platform like Robinhood.
This is the problem in stock investment business; It is not expected that someone who has not traded before or has experience in investment will have a capacity to fight stress. You can’t always win. In fact, most amateur investors are likely to lose at the beginning. It is very difficult to deal with a huge loss of investment, especially when suffering from economic difficulties due to the pandemic.
Classic markets were generally more stable than the cryptocurrency market, but the situation changed during the pandemic period.
As Alex’s case, it can be quite dangerous for amateur investors to use terribly high-risk leverage to make quick profits, especially for the pandemic period.
Changpeng Zhao emphasizes the responsibilities of commercial platforms
The fact is that many trading platforms are trying to warn against the dangers of high leveraged transactions.A few notifications with addiction alerts can be used to alert investors. Binance CEO CZ mentioned this problem in his latest tweet.
Telling Alex’s story, CZ said:
“THIS IS INDEED A SAD ENDING. BINANCE IS PROBABLY THE FIRST CRYPTOCURRENCY EXCHANGE TO HOLD RESPONSIBLE TRADING ITEMS. ”
CZ referred to the official explanation of Binance’s security measures against addiction and encouraging people to be more careful. One of these security practices is the Anti-Addiction Notification, which prohibits users from temporarily investing due to “successive losses”.