An $18 billion stablecoin is losing its dollar peg with all the magical chaos of algorithmic stables, with a dash of Bitcoin systemic risk drama.
Here's everything you need to know.
The $UST Depeg Thread:
— jonwu.eth (@jonwu_) May 9, 2022
If Terra fails, it's half the size of Enron, so maybe hold off on the shadenfreude while we're on the edge of the regulatory abyss.
— Ryan Selkis 📖 🖊🔑 (@twobitidiot) May 10, 2022
I would also say that people will look at this and think crypto is generically bad. It doesn't help that large parts of the industry praised it as innovative.
— Arthur B. 🌮 (@ArthurB) May 10, 2022
Hilariously, UST is now at $0.79 now and I feel relieved, whereas 35 minutes ago, when it was at $0.75, I was horrified 🤔😂
— Laura Shin (@laurashin) May 10, 2022
Just as the outside view skeptics predicted, during a large market move a stablecoin blew out. Just not the stablecoin they predicted.
Which was predictable, if you knew the details.
This isn't a comment about good vs bad--it's about how important it is to know the details!
— SBF (@SBF_FTX) May 10, 2022
Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
Even fully-collateralized fiat stablecoins have depegged. Even some of the weak algo stablecoins have recovered.
Some thoughts. 🧵👇
— Emin Gün Sirer🔺 (@el33th4xor) May 10, 2022
Should I buy some Luna for negative correlation? https://t.co/iFeHJTSudM
— Charles Hoskinson (@IOHK_Charles) May 10, 2022