Blog: How TerraUSD, a Digital Token Designed to be Stable, Fueled a Crypto Crash – Barron’s

Bitcoin and other cryptocurrencies have gone from bad to worse as selling pressure intensifies across the tech landscape. But the crypto crash appears to have been accelerated by a type of token that’s supposed to hold up when everything else tanks: stablecoins.

As their name implies, stablecoins are designed to maintain a fixed value, typically set at $1 per token. But a fast-growing “algorithmic” stablecoin called TerraUSD crashed as low as 23 cents on the dollar this past week, before recovering a bit. That appears to have…

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s