Cryptocurrency News
Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?
2022.05.19 00:46
Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?
The past week has not been an easy one. After the collapse of the third-largest stablecoin (UST) and what used to be the second-largest blockchain after Ethereum (Terra), the depeg contagion seems to be spreading wider.
While UST has completely depegged from the U.S. dollar, trading at sub $0.1 at the time of writing, other stablecoins also experienced a short period where they also lost their dollar peg due to the market-wide panic.
Asset-backed stablecoins were in favor during downturn, except for USDT
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Are algorithmic stablecoins finished?
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