Cryptocurrency Q&A Why did TerraUSD crash?

Why did TerraUSD crash?

Lorenzo Lorenzo Fri Apr 18 2025 | 7 answers 1804
TerraUSD, a stablecoin, suddenly lost its peg to the US dollar and crashed, causing a huge panic in the crypto market. I want to know the reasons behind this crash. Why did TerraUSD crash?

7 answers

ShadowFox ShadowFox Sun Apr 20 2025
The Terra ecosystem has garnered significant attention due to its recent collapse.

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HanRiverVisionaryWaveWatcher HanRiverVisionaryWaveWatcher Sat Apr 19 2025
This interdependence created a fragile equilibrium that was susceptible to disruptions.

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RubyGlider RubyGlider Sat Apr 19 2025
Among the myriad of details surrounding the failure, two key issues emerged as pivotal in causing the crash.

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Carlo Carlo Sat Apr 19 2025
When the market value of LUNA fluctuated, it had a direct impact on UST's ability to maintain its peg.

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Carlo Carlo Sat Apr 19 2025
The first issue revolves around the TerraUSD (UST), a stablecoin designed to maintain a constant value.

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