Spirit of Crypto
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Spirit of Crypto

This is an email from Where Spirituality meets Technology, a newsletter by Spirit of Crypto.

Are Stable Coins and Defi Really Safe?

Here’s answers to a questions everybody are asking right now

The current Crypto Crackdown has revealed huge fragility in the crypto Ecosystem

Especially in Defi where the shit hit the fan.

Big Time.

The total locked Value (TVL) in Defi has plummeted from $231,- billion to $112.29 billion on Sunday. A 51.38% loss in 42 days. This means $112 billion has exited the markets of decentralized finance.

The Terra-Luna ecosystem losing its peg to the dollar accelerated the exodus.

In case you didn’t notice, the stable coin UST dropped a whopping 80% to 0.225 USDT on May 11th. The TERRA-LUNA token lost almost all of its value, and the lending protocol Anchor was drawn down into the meltdown to declining 93% from $30 to $2 on May 11th alone.

The result of all of this?

Regulators have woken up again, smelling a chance to bring crypto to its knees, or at least to regulate stable coins, as the UK announced.

The most burning question for you as a crypto wallet holder is whether your Defi product and your stable coin of choice is actually safe.

This is my take on the situation and why there is also an upside to the shakeout>>>

thank you for following Spirit of Crypto

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Lucien Lecarme

For more truth bombs and weekly medicine to start living a more meaningful life, join the happy family back at my Substack https://lucienlecarme.substack.com