What’s next when stablecoins are no more stable? Crypto crash: Stablecoin collapse sends tokens tumbling
The combined market value of all crypto-currencies is now reportedly $1.12trillion, about a third of its November value, with more than 35% of that loss coming this week. Bitcoin value drops by almost 60% since November peak!
Crypto-currency markets are being rocked after a popular token lost 99% of its value, dragging down a so-called „stablecoin” with it, according to BBC.
The Terra Luna token fell from a high of $118 (£96), last month, to $0.09 on Thursday. The collapse had a knock-on effect on a linked token, TerraUSD, which is normally stable.
And spooked investors are now pulling out of major crypto-currencies, sending markets plummeting.
The companies behind stablecoins try to ensure they remain in parity with assets such as the US dollar – with one token equalling $1, for example.
But on Thursday TerraUSD fell to $0.4 according to the trading website Coin Market Cap.
Tether, the most popular stablecoin, also fell off its US dollar peg – to an all-time low of $0.95.
„The collapse of TerraUSD has started what we used to call ‘the panics’, when major financial institutions sold off large chunks of assets and everyone else tried to take their money out as quickly as they could,” economist Frances Coppola said.
Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
