Cryptocurrency Q&A
What stable coin went to zero?
What stable coin went to zero?
Maria
Wed Jul 31 2024
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7 answers
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Could you please elaborate on the recent event where a stablecoin unexpectedly depegged from its intended value and plummeted to zero? I'm particularly interested in knowing which stablecoin it was, what caused this dramatic decline, and whether there were any warning signs or red flags that investors should have been aware of beforehand? Understanding the specifics of this case could help educate the broader cryptocurrency community and prevent similar incidents in the future.
7 answers
HallyuHeroLegendaryStarShine
Fri Aug 02 2024
The $18.7-billion UST, designed to maintain a stable value pegged to the US dollar, plummeted from its intended $1 value to nearly zero within days.
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LucyStone
Fri Aug 02 2024
Similarly, Luna, which had a market capitalization of over $20 billion, collapsed from approximately $80 to practically nothing in the same timeframe.
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CryptoAlchemy
Fri Aug 02 2024
The sudden and unprecedented collapse of both assets sent shockwaves throughout the cryptocurrency community, causing widespread panic and uncertainty.
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Lorenzo
Fri Aug 02 2024
The reasons behind the collapse are complex and multifaceted, involving issues such as excessive leverage, market manipulation, and a lack of transparency in the underlying algorithms.
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CryptoLordess
Fri Aug 02 2024
The cryptocurrency market was shaken in May 2022 when the algorithmic stablecoin USD Terra (UST) and its associated backing token Luna suffered a catastrophic decline.
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