#cryptocurrency crash

The crash of "stablecoin" TerraUSD (UST) and LUNA, backed by the largest algorithmic stablecoin platform Terra, took the global cryptocurrency market by storm. It did not seem to help that the current cryptocurrency trend is in the declining phase. Yet as much as the LUNA and UST crash shook the emerging world of cryptocurrencies, the question remains as to why an entity considered as "stable" took a deep dive to the bottom so drastically. This concise article attempts to make sense of what some would like to compare as the "global financial crisis moment" of cryptocurrency. Introduced in 2019 by Evan Kereiakes, Do Kwon, Marco Di Maggio, and Nicholas Platias, Terra's promise was to be a "price-stable and growth-driven" cryptocurrency. As defined by Coindesk, what backs them is an on-chain algorithm that facilitates a change in supply and demand between the stablecoin and another cryptocurrency that acts as security. In this case, what props the stablecoin UST is the native Terra cryptocurrency LUNA. So that is eventually what triggered [the crash]." The collapse also prompted critics who have firmly believed in Terra being another type of Ponzi scheme. Read more in our articles including "Crypto Explainer: Why LUNA and UST crashed?" and "TECNO POVA Curve 2: Top 4 Best Features".