FINTECH | CRYTOCURRENCY
The crypto market was in a downward spiral with nearly six months of losses when rumors surfaced about a possible sell-off of Bitcoin (BTC) to prop up the TerraUSD (UST)
Image by Sergei Tokmakov Terms — Cryptocurrency Regulation from Pixabay.
“Luna Foundation Guard (LFG) said it spent almost all of the Bitcoin in its reserve last week in a futile attempt to save UST.” — CNBC.
You can read the other threads (2–7) on Twitter.
The $40 billion crash of UST and LUNA may have been the catalyst that caused a domino effect on the entire cryptocurrency market with losses of more than $500 billion and an exodus of nearly a trillion USD from the market.
SEC Investigating TerraUSD — John Samuels — Pixabay
What Is UST & How Does It Work?
“UST is the decentralized and algorithmic stablecoin of the Terra blockchain. It is a scalable, yield-bearing coin that is value-pegged to the US Dollar. TerraUSD was created to deliver value to the Terra community and offer a scalable solution for DeFi amid severe scalability problems faced by other stablecoin leaders like Dai.” — Coin Market Cap.
As we now know, that did not work as planned.
Although the Securities & Exchange Commission (SEC) is investigating Terra’s actions and the collapse of UST, there is little hope of any investors receiving compensation.
Compare UST to Tether (USDT)
“Tether (USDT) was one of the first cryptocurrencies to peg its market value …….