Terra’s Crypto Meltdown Was Inevitable

A big chunk of the investment of around $60 billion in these cryptocurrencies was pulverized overnight, and more of it will follow as people scramble to get rid of their diminished coins.Meanwhile this week, the broader crypto market is in turmoil as bitcoin fell to $27,000 after bleeding 8 percent of its value in 24 hours, and numerous other cryptocurrencies are routing its descent.”UST was marketed to the public as a stablecoin, a type of cryptocurrency whose worth supposedly stays stable over time, developing a practical edge versus the wild price fluctuations of other cryptocurrencies like bitcoin or ether. With a lot of stablecoins, that stability is guaranteed by currency reserves– whoever creates a stablecoin pegged against the dollar must theoretically keep a comparable amount of dollars in a vault someplace– or other security, including crypto.

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