As popular assets in the cryptocurrency space such as Bitcoin see their values rapidly eroding, the decline of a particular stablecoin is drawing the attention of observers as a possible red flag for the market.
TerraUSD, also called UST, is a stablecoin that’s seen its value drop as low as US$0.30 this week. Read more: Crypto and tech stocks are plummeting.
What that means for your investments That’s fundamentally at odds with the pitch of UST and other stablecoins, which are supposed to maintain a steady value, usually equivalent to the U.S.
dollar. So what’s gone wrong with this stablecoin, and what will it mean for the crypto market? Here’s what you need to know.