The cryptocurrency market isn't pretty right now. Red is everywhere: Bitcoin and ether are at their lowest points since 2020, and altcoins like dogecoin and cardano are faring even worse.
While it's painful for crypto investors, this dip is far from unprecedented. Cryptocurrencies are infamous for their volatility, and tempestuous economic conditions are bringing down not just crypto, but the stock market too.
What is unprecedented, however, is the collapse of the luna cryptocurrency and its associated terraUSD stablecoin, aka UST. You may not have heard of UST before, or know what a stablecoin is, but it's a big deal. Billions of dollars in crypto wealth have been vaporized, sending shockwaves throughout the whole market.
There are two intertwined stories here: That of the UST stablecoin and that of luna, both of which are part of the terra blockchain. The UST coin is designed to retain a value of $1 at all times, but it was depegged last Monday, on May 9, and has since fallen to just 17 cents. Then there's luna, the centerpiece of terra's ecosystem. Its value has collapsed in one of the most stunning crypto crashes ever recorded.
More at https://shrtcô.de/apwLVz
While it's painful for crypto investors, this dip is far from unprecedented. Cryptocurrencies are infamous for their volatility, and tempestuous economic conditions are bringing down not just crypto, but the stock market too.
What is unprecedented, however, is the collapse of the luna cryptocurrency and its associated terraUSD stablecoin, aka UST. You may not have heard of UST before, or know what a stablecoin is, but it's a big deal. Billions of dollars in crypto wealth have been vaporized, sending shockwaves throughout the whole market.
There are two intertwined stories here: That of the UST stablecoin and that of luna, both of which are part of the terra blockchain. The UST coin is designed to retain a value of $1 at all times, but it was depegged last Monday, on May 9, and has since fallen to just 17 cents. Then there's luna, the centerpiece of terra's ecosystem. Its value has collapsed in one of the most stunning crypto crashes ever recorded.
More at https://shrtcô.de/apwLVz
