Stablecoin “house of cards” collapses after cryptocurrency slide
The cryptocurrency market has seen a step decline in value with the combined market value of all cryptocurrencies down to around $1.2 trillion, less than half its level in November 2021. While most digital coins can see wild fluctuations in their value some cryptocurrencies have been set up to remain “stable” based on the value of a fixed asset.
One such stablecoin, TerraUSD, was pegged to the dollar but saw it come completely unhinged from the greenback. Its value has dropped below 8 cents on Thursday, now hovering around 15 cents. Its free fall also pulled Tether off its peg, although due to differences in how they work the latter has held just shy of a 1 to 1 exchange rate with the dollar.
Why is this? Jeremy Allaire, Co-founder & CEO of Circle, explains.
social experiment by Livio Acerbo #greengroundit #bitcoin – original source here