Explainer: Questions asked about whether other ‘stablecoins’ may follow suit – and if so, what else?
Billions were wiped off the cryptocurrency market this week with the collapse of the Terra “stablecoin”. But is its failure just another example of the here-today-gone-tomorrow nature of the sector, or could it be the beginning of a wider downturn?Terra is a stablecoin – a cryptocurrency that is intended to have a fixed value, typically $1. Stablecoins function similarly to a bank in the crypto ecosystem, providing a safe place to store money and greasing the wheels of commerce.
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