Terra Collapse Teaches About “Crypto” and Bitcoin

Tera crumble.

The blockchain project is home to the popular algorithmic stablecoin TerraUSD (UST), which recently became the fourth largest stablecoin by market cap but now ranks fifth, on the verge of collapse as UST repeatedly failed to maintain its $1 peg and LUNA, the blockchain origin token approaching from zero.

Terraform Labs, the tech startup behind Terra’s development, halted production of new blocks on the network Thursday “to prevent government attacks in the wake of a sharp inflation of LUNA in US dollars and a significant drop in the cost of the attack.” Twitter.

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