After Collapse Lost $48B, Crypto: ‘Let’s Launch More’
— Launch, Collapse, Stablecoins, Terraluna, Lost, Lets, Problem, Stablecoin, Crypto, Aave — 1 min read
In May, terraUSD, a so-called “algorithmic” stablecoin broke its dollar peg, causing a run. Within the space of a week, investors were out $48 billion. Now, two months later, a pair of projects want to launch stablecoins that are not currency-backed. Stablecoins’ stability ultimately rests on users’ confidence that they can redeem their stablecoins on demand. This means that if the collateral tokens drop too far too fast, there could be trouble. The U.S. Treasury Secretary Janet Yellen told the House Financial Services Committee that while there’s no real threat to financial stability, there wasn’t yet “a real threat” Source