TerraUSD: Stable Doesn’t Always Mean Safe and Sound
Over the weekend of May 7–8, 2022, Terraform Lab’s TerraUSD stablecoin (aka “UST”)—which was one of the top-three largest stablecoins by market share—plummeted to mere pennies from its previous $1 peg. The damage was done by the following Monday. Investors had lost over $18 billion invested (aka “locked”) into TerraUSD. Make that over $40 billion when combined with the value of Luna, Terra’s native token.
While the future of TerraUSD and other cryptocurrencies hang in the balance, there is one thing readers can take to the bank: stablecoin regulation is coming. And at least some stablecoin issuers appear to welcome it.
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