The End of the Stablecoin?

The market had crashed 🔥 midnight yesterday due to Luna’s fever 🤕.

Image credit: https://www.coindesk.com/markets/2022/05/12/terras-luna-has-dropped-997-in-under-a-week-thats-good-for-ust/

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 😒?