Crypto collapse?

I don’t understand how TerraUSD worked, how it was kept stable and pegged to USD. We know it has fallen far off that peg. It appears there is a sister crypto, Luna, that is part of the pegging process. It is now down 99%. Virtually worthless. One has to wonder if this will be contained to a single (or a few) stable coins or will be much worse.

https://www.cnbc.com/2022/05/12/cryptocurrency-luna-now-almo…

Bill Jurasz
not going near crypto

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I don’t understand how TerraUSD worked,

Some of the other major stablecoins back up the peg to the USD.

UST or TerraUSD was using a market place to have traders keep the peg.

I posted a little further up the “Death Spiral” subject as discussed in a NYT article. The industry saw it coming. I am just learning UST was using this method.

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I don’t understand how TerraUSD worked, how it was kept stable and pegged to USD.

It didn’t. Work that is. :rofl:

2 Likes