The End of the Stablecoin?
Published in
3 min readMay 13, 2022
The market had crashed 🔥 midnight yesterday due to Luna’s fever 🤕.
Stablecoin UST was supposed to peg at $1, but it was $0.22. It meant you would spend $1 to buy $0.22 of the token. You immediately lost 78% of your profits.
Then the founder used Bitcoin to back his stablecoin, which made it worse.
And that is not sopping the nightmare of Terra that they would face 🕳️.
To save UST, Terra issued a supply of tokens to support the losing value of UST and tanked the price of Luna from $80 to less than $1. So which is a stablecoin, then 😒?