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.
7
answers
ShadowFox
Sun Apr 20 2025
The Terra ecosystem has garnered significant attention due to its recent collapse.
HanRiverVisionaryWaveWatcher
Sat Apr 19 2025
This interdependence created a fragile equilibrium that was susceptible to disruptions.
RubyGlider
Sat Apr 19 2025
Among the myriad of details surrounding the failure, two key issues emerged as pivotal in causing the crash.
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.
Carlo
Sat Apr 19 2025
The first issue revolves around the TerraUSD (UST), a stablecoin designed to maintain a constant value.