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Crypto Chat: Terra's UST stablecoin unraveled last week and the entire crypto market was shaken up, now what?
Last week Terra’s UST (UST 0.81% ) took a drastic plunge, losing its dollar peg, shaking up the crypto market, and the incident exposed the weakness of algorithmic stablecoins. Walter Teng & Carrie Presley discuss the Terra Luna (LUNA -1.12% ) ecosystem, including recent developments from Do Kwon, co-founder of Terra Luna blockchain. CRYPTO WEEKLY: THE UST UNWIND AND ITS IMPLICATIONS CRYPTO MARKET UPDATE FROM SEAN FARRELL
THE MAKINGS OF A QUASI-BANK RUN As if investors needed more reasons to be bearish, the market was thrown into a slight bout of chaos on Monday after a quasi-bank run on UST. Please refer to our prior work on the topic for further background information on UST’s functionality, Luna Foundation Guard, Anchor, and stablecoins. FIRST PEG-BREAK We have ample reason to believe that the “run” on UST 0.81% was not...