How a Tokyo FOMO Family Invested in Bitcoin and Lost

Economics

There’s an issue, in Japan, with certain high income families being unable to save money. Here’s the story of a Japanese household of four, living in the Tokyo Bay area, in a high-end tower apartment, repaying multiple loans and having unnecessary spending. Every month the household was using up their entire revenue and they couldn’t pay the tuition for their daughters’ private school and high schools. That’s when bitcoin came into their lives.

Also read: The Psychology of the Cryptocurrency FOMO-FUD Cycle Has Been Weaponized

Tokyo Bay 60 Million Yen ‘Tawaman’ Tower Mansion Tribe is Collapsing

“How can we overcome paying our daughters’ schools and the family’s big expenses?” the family asks Mitsuaki Yokoyama, a financial planner. “I started investing in crypto with 100,000 yen around the end of November last year, then the price rose by 2.5 times in just a month. So I got all excited and I invested 1 million yen more, but the price crashed so badly this year, and when I finally woke up from my daydream, I found out I had lost half of all my important savings,” Masao Ikeuchi, a 42-year old company employee living in Tokyo said. With his spouse, Naoko, (a pseudonym), 42, he went to consult a financial planner. As the couple heard a husband’s colleague saying there was a way to make money very easily, they decided to jump into bitcoin. They had a great start, but soon made losses to the point of no return. “What the hell on earth happened?” the couple questioned.

How a Tokyo FOMO Family Invested in Bitcoin and Lost

The Ikeuchi family lives in a high-rise tower apartment in the Tokyo Bay area with their two daughters, one attending a second grade junior high school, the other a fifth grade elementary school, and with two cats. They enjoy the wealthy life of the so-called “Tawaman tribe”, an abbreviation for “tower mansion” used to refer to people in Japan who purchase newly built properties, mostly 3LDK (3 rooms plus a dining room-kitchen area) at about 60 million yen ($550,000).

Their take-home monthly salary is about 420,000 yen ($3,800) for the husband, about 310,000 yen ($2,800) for the wife – a total of about 730,000 yen ($6,600). In Japan, the family is considered as a privileged high-income household.

The couple earns a 15 million yen ($135,000) annual income, but they can’t pay their daughters’ tuition fees. They bought their flat eight years ago using most of their savings as a down payment of 10 million yen ($90,000), and they had been spending a lot monthly – about 710,000 yen ($6,400), so they could save only about 17,000 yen a month ($153). As of last autumn, their savings amounted to only 2.4 million yen ($21,500) and they started to get worried that they couldn’t pay their children’s school tuitions. What they needed was a way to make money somehow easily.

Bitcoin, “Easy Money”

This is why the couple sought to increase their money by making “easy investments” so they could acquire an average amount of over 1 million yen ($9,000) per year to pay the school fees and tuitions. What made Mister Ikeuchi decide to invest in bitcoin was a colleague at work who told him, “You should try Bitcoin, personally, my investment increased by 1.5 times.”

The attraction of easy money persuaded Masao Ikeuchi to read a bunch of books on cryptocurrency and understand the basics, before he purchased 100,000 yen ($900) worth of bitcoin for the first time, just for a try. He did very well at first, the 100,000 yen ($900) worth of bitcoin that he bought by the end of November 2017 rising to 260,000 yen ($2,350) in just one month. Mister Ikeuchi got so excited he purchased bitcoins for another 1 million yen ($9,000). However, the price fell to a third during the crash this year. The family man panicked and repeatedly failed to recover the losses. He even picked up on FX or individual stocks and by the time he understood what was going on he realized that the 1.1 million yen ($9,900) he had invested into bitcoin had decreased to 300,000 yen ($2,700).

He FOMO-ed

How a Japanese FOMO Family Invested in Bitcoin and LostMister Ikeuchi was caught by fear of missing out (FOMO) and the desire to get rich quickly. Due to prolonged low interest rates, deposits did not increase his savings. Moreover, the media constantly reports on success stories of investors who earned big money with bitcoin or FX. It was understandable that people like Mister Ikeuchi wished to try it for themselves.

“Investments rarely work if you jump into a nice story. If it worked for the first time, it’s often just the beginner’s luck. As far as I know, most things do not last for long,” Mitsuaki Yokoyama, the financial planner told President Online. Mr. Ikeuchi jumped to investment and failed to accumulate more than he had invested. The first thing to do in order to increase your savings is to review all living expenses, the experts says. “Regarding investments, people shouldn’t avoid making any. After reducing household expenditures, people should consider a long-term investment with small risks,” he finished.

Mr. Ikeuchi seems to have misunderstood how to make good use of his money. However, due to this failure, he should be primely positioned to improve his investment strategies, enabling him to invest more intelligently next time. 

What do you think of investors who FOMO into cryptocurrency with the desire to get rich quick? Let us know in the comments section below.


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Japan’s Biggest Chat App Line Expands Cryptocurrency Offering

Bitbox Tron

Line Corporation, a Japanese Internet firm and the operator of the country’s most popular messaging app, has added Tron (TRX) to its cryptocurrency exchange platform Bitbox. Tron is the first crypto-token to pass the review process by the Bitbox open-listing committee and joins other cryptocurrencies already available in the platform including Bitcoin, Ethereum, Litecoin, Ripple, and Stellar.

Bitbox, which said it was now focusing on expanding the range of options available for customers, is accepting applications from other crypto-tokens that want to join the exchange and that are prepared to undergo a thorough evaluation process.

Tron is building the infrastructure for a decentralized Internet. It launched its testnet in March, its mainnet in May, and testnet virtual machine on testnet in July. That same month, Tron acquired file-sharing software provider BitTorrent.

“Tron has a solid tech platform, especially now it has joined forces with BitTorrent,” said Youngsu Ko, CEO of Line Tech Plus, Line’s Singapore-based subsidiary that operates Bitbox. “We look forward to building a strategic partnership with Tron and offering our users the best experience available in the cryptocurrency space.”

New token venture fund

Line has also announced the launch of a new US$10 million token venture fund called Unblock Ventures. The fund will focus on token investments with an initial commitment made by LVC Corporation, another Line group company. The fund is expected to expand in the future, according to the growth of the blockchain industry.

By launching the new corporate token fund, Line said it aims to “boost the development and adoption of cryptocurrency and blockchain technology.”

Line unveiled plans to get into the fintech business earlier this year. The firm established a new company, Line Financial Corporation, as a follow-up to Line Pay and to further reinforce its position in financial services.

The new company focuses on creating and providing a variety of financial services that tackle cryptocurrencies, lending, and insurance, all from the Line messaging app.

Line is also considering applications of blockchain technology in countries with underdeveloped financial infrastructure to enable services such as the ability to pay utility bills via mobile phone.

Messaging Giant LINE Launches New Crypto Fund, Lists Tron (TRX)

The current crumbling crypto market conditions appear to be no deterrent to tech and communications companies that are clamoring to get in on the action. South Korean messaging firm LINE is upping the game with the launch of a $10 million crypto investment fund.Unblock Ventures Crypto FundAccording to the announcement, LINE’s Korean blockchain subsidiary, Unblock Corporation, will be operating the fund. The initial capital pool for the corporate token venture fund, named Unblock Ventures, will be $10 million which will be made by another Line Corporation company, LVC Corp. The fund is expected to expand in the future in line with growth in the blockchain sector. The company added;“By launching this new corporate token fund, LINE is aiming to boost the development and adoption of cryptocurrencies and blockchain technology. As such, LINE is one of the first publicly traded corporations to formalize token investments through a corporate fund.”LINE is big in Asia and has over 200 million users, mostly in Japan, Korea, Thailand and Indonesia. It is based in Japan and listed in Tokyo and on the NYSE whereas the parent firm, Naver Corp, is based in Korea. The firm’s reach goes beyond messaging platforms as it also offers payment services, food delivery, social gaming and taxi services.Tron Listed on BITBOX, Airdrop InboundThe new crypto fund marks LINE’s second big foray into the industry this year. In June NewsBTC reported that LINE launched its own crypto exchange, BITBOX, which is based in Singapore. Yesterday it announced that it was adding Tron (TRX) to its listings on the exchange. The firm also added that it was “now accepting applications from other coin projects that want to join the exchange and that are prepared to undergo a thorough evaluation process.”An airdrop was also announced to celebrate the new addition with 9 million Tron coins to be airdropped to users on BITBOX, in a promotional event running until August 22. CEO of LINE Tech Plus, the firm’s Singapore-based subsidiary that operates BITBOX, Youngsu Ko, said;“Integrating TRON (TRX) with BITBOX will enable us to connect with the world’s fastest-growing blockchain project. TRON has a solid tech platform, especially now it has joined forces with BitTorrent. We look forward to building a strategic partnership with TRON and offering our users the best experience available in the cryptocurrency space.”TRX prices jumped 11% on the announcement yesterday but fell back to $0.0198, up just 1% on the day at the time of writing.