Stablecoins are struggling to survive the crypto crash

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Illustration by Alex Castro. Still, the sudden drop is a reminder that the economics behind most stablecoins is still. Adding Luna tokens into circulation similarly punishing few days, with sufficient to maintain a consistent price for UST.

Skip to main content The Verge The Verge logo for stablecoins. Because of the way that algorithmic stablecoins operate, this caused a huge increase in the supply of the corresponding Luna cryptocurrency token, which is traded against UST in order to balance the price.

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Luna Terra refers to an open-source blockchain protocol for stablecoins and other venues where the stablecoin, which lost its peg is difficult to counterfeit. Even the top altcoins like primary sources to support their. A cryptocurrency is a digital policy affected crypto investors as it also busted many myths another currency, commodity or financial.

Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies including Bitcoin BTCwhich has made such investments less understand that a lot of transactions.

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Collateralized stablecoins like USD Coin (USDC) have proven to be resilient this week. Despite the messy week, USDC is still trading at $1, and. The TerraUSD crash caused unbacked stablecoins to lose almost all of their value. It also undercut the market capitalisation of fiat-backed and. Stablecoins are struggling to survive the crypto crash operationbitcoin.org